Gold rate today: Yellow metal gains marginally; silver at Rs 59,500 level


NEW DELHI: Gold prices edged up mildly on Monday, rebounding from recent lows, even as the US dollar continued to trade firm.

The dollar started the week just off a 20-year high against peers, as investors sought safety due to fears about global growth, and continued to make rival safe-haven gold less attractive for buyers holding other currencies.

Gold futures on

were trading mildly higher by 0.08 per cent or Rs 42 at Rs 49,915 per 10 grams. However, silver futures gained about 0.28 per cent or Rs 168 at Rs 59,500 per kg.

Although seen as an inflation hedge, bullion is sensitive to rising US short-term interest rates and bond yields, which raise the opportunity cost of holding it.

Gold may witness some more correction in the coming weeks which might be a good opportunity to enter and go long, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“Higher inflation and geopolitical volatility are supporting gold prices, however, various physical tightening measures by central banks to curb inflation and a stronger dollar are pushing gold to lower levels,” he added.

In the spot market, the highest purity gold was sold at Rs 50,465 per 10 grams while silver was priced at Rs 59,106 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have tumbled more than Rs 2,000 per 10 grams in the last three weeks, whereas silver has plunged about 7,600 per kg in the same period under review.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 and resistance at $1,830 per ounce. MCX Gold June support lies at Rs 49,700 and resistance at Rs 50,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets
Spot gold was up 0.1 per cent at $1,812.15 per ounce, as of 0227 GMT. US gold futures gained 0.1 per cent to $1,809.80.

Marking their fourth straight weekly decline, gold prices fell more than 1 per cent on Friday to the lowest since February 4 at $1,798.86 per ounce, before closing at $1,811.15.

Spot silver was down 0.1 per cent at $21.06 per ounce, platinum was unchanged at $938.46, and palladium rose 0.3 per cent to $1,949.88.



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