Gold futures on MCX dipped 0.11 per cent or Rs 59 to Rs 52,819 per 10 grams. Silver futures were trading flat, marginally up by 0.03 per cent or Rs 18 at Rs 68,808 per kg.
US monthly consumer prices increased by the most in more than 16 years in March as Russia’s war against Ukraine boosted the cost of gasoline to record highs, cementing the case for a 50 basis point interest rate hike from the Fed.
Pritam Patnaik, Head – Commodities, Axis Securities said gold prices are primarily aided by a higher than expected rise in US inflation and an ominous statement by Russian President Putin on the Ukrainian war. “The inflation could be peaking out and could help tilt the Fed stance from being overly hawkish, but it’s too much hope to put on one data point, one will have to wait and watch how the trend pans out,” he added.
Discounts on physical gold in India widened as scrap supplies increased amid only a slight improvement in demand, while purchases in top consumer China were steady despite Covid-19 lockdowns as buyers sought safe-haven assets.
In the spot market, the highest purity gold was sold at Rs 52,622 per 10 grams while silver was priced at Rs 67,833 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have surged almost Rs 1,200 per 10 grams for the last one week, whereas silver has advanced about Rs 2,000 in the same period.
Ravi Singh, Vice President and Head of Research, ShareIndia advised buying gold above Rs 52,500 for the target of Rs 53,100, whereas traders can short the yellow metal below Rs 52,300 for the target of 52,000.
Spot gold was little changed at $1,964.70 per ounce by 0136 GMT, after hitting a near one-month peak of $1,978.21 on Tuesday. US gold futures were down 0.4 per cent at $1,968.80.
Spot silver was flat at $25.36 per ounce, platinum was up 0.3 per cent to $968.17 and palladium rose 1.1 per cent at $2,350.68.