Gold futures on MCX inched up 0.08 per cent or Rs 44 down to Rs 52,115 per 10 grams. Silver futures were trading up by 0.09 per cent or Rs 58 at Rs 67,050 per kg.
Gold as a safe haven is attractive due to soaring inflation and uncertainty in the Russian-Ukraine war, said Ravi Singh, Vice President and Head of Research, ShareIndia. “As long as the two factors continue to dominate markets for sentiment – a scenario for a further uptrend in gold price remains intact. It is a good opportunity to go long on every dips,” 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 51,839 per 10 grams while silver was priced at Rs 66,636 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped more than Rs 1,700 per 10 grams in the last one month, whereas silver has plunged over Rs 4,250 per kg in the same time period.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said that gold is pressurized by firm US dollar and higher bond yields as Fed officials express support for faster monetary tightening to control inflation.
“However, supporting prices are concerns about the health of the Chinese economy amid rising virus cases and disappointing economic data, continuing Russia-Ukraine fighting and persisting inflation concerns,” he adds.
Singh from ShareIndia has advised to buy gold above Rs 52,200 for the target of Rs 52,500, whereas traders can short the yellow metal below Rs 51,800 for the target of 51,600.
Spot gold was down 0.2 per cent at $1,942.93 per ounce, after hitting a more than one-week high of $1,949.32 earlier in the day. US gold futures were up 0.2 per cent at $1,949.
Spot silver was flat at $24.75 per ounce and platinum rose 0.7 per cent to $981.41. Palladium was up 2.8 per cent at $2,494.48 after hitting a more than two-week high earlier in the session.