Gold rate today: Yellow metal trades marginally lower; silver holds Rs 55,000

Gold rate today: Yellow metal trades marginally lower; silver holds Rs 55,000

Gold prices edged lower on Friday due to an uptick in the US dollar and fears over aggressive rate hikes by major central banks to tame inflationary pressures dented bullion’s appeal.

The dollar rose 0.2 per cent against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies. The US Fed’s meeting is due next week where an interest rates hike of 75 basis points is expected.

Gold futures on

were trading lower by 0.10 per cent or Rs 51 at Rs 50,324 per 10 grams. However, silver futures plunged 0.23 per cent or Rs 126 to Rs 55,285 per kg.

Ravindra Rao, VP-Head Commodity Research at Kotak Securities said gold trades mixed. It recovered as the US dollar index turned choppy and US bond yields eased back and spate of disappointing economic data, Rao said.

In the spot market, the highest purity gold was sold at Rs 49,972 per 10 grams while silver was priced at Rs 53,907 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have tumbled more than Rs 2,300 per 10 grams in the 13 trading sessions, whereas silver has plunged more than Rs 4,200 per kg in just one session.

The rate hike by the ECB and the announcement of a new tool called the Transmission Protection Instrument () to control disorderly market dynamics, had a positive impact on gold prices, said Ravi Singh, Vice President and Head of Research, ShareIndia.

Trading Strategy
Singh from ShareIndia suggests buying gold above Rs 50,500 with a target of Rs 50,800, whereas one can sell the yellow metal below Rs 50,200 with a target of Rs 50,000.

Global Markets
Spot gold was down 0.2 per cent at $1,714.72 per ounce. Prices dropped to their lowest level in more than a year at $1,680.25 on Thursday before closing up 1.3 per cent.

Bullion was still set for its first weekly gain in six, up nearly 0.5 per cent so far this week. US gold futures were up 0.1 per cent at $1,714.90 per ounce.

Elsewhere, spot silver fell 0.3 per cent at $18.78 per ounce, while platinum gained 0.3 per cent to $873.92, and palladium edged 0.2 per cent higher to $1,895.86.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

About Author

Related posts

Leave a Reply