The dollar index hovered near its highest level in about two decades, making greenback-priced bullion less attractive for overseas buyers.
Gold futures on
were trading higher, rising about 0.17 per cent or Rs 86 at Rs 50,920 per 10 grams. However, silver futures gained close to 0.22 per cent or Rs 133 at Rs 61,070 per kg.
Gold wrapped up the previous week lower as a stronger dollar and interest rate hikes by major central banks dented the appeal of bullion, which yields no interest.
Pritam Patnaik, Head – Commodities, Axis Securities said that a common theme of inflation control being hummed by practically all the central bankers across the globe has left the global economy with a higher interest rate regime.
“A strong dollar and rising US bonds have maintained sustained pressure on bullion prices,” he added. “The bullion could witness some volatility in atight range, with thin volumes.”
In the spot market, the highest purity gold was sold at Rs 51,169 per 10 grams while silver was priced at Rs 61,576 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have crossed the Rs 51,000 mark per 10 gram after four sessions, whereas silver gained more than Rs 1,000 per kg in just one session.
Ravi Singh, Vice President and Head of Research, ShareIndia said that gold prices are rising a bit on weaker equities and geopolitical tensions, facing headwinds from the rate hike from Fed.
“However, on technical setup, gold is showing weakness in volume terms and may be in downtrend to sideways,” he added.
“We expect gold prices to trade sideways to up for the day in absence of the US market with support at $1,830 and resistance at $1,860 per ounce. MCX Gold Aug support lies at Rs 50,400 and resistance at Rs 51,200 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was down 0.2 per cent at $1,836.67 per ounce. US gold futures were flat at $1,840.00.
Spot silver fell 0.7 per cent to $21.49 per ounce and platinum dipped 0.8 per cent to $934.34, while palladium rose 0.8 per cent to $1,830.81.
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