Gold rate today: Yellow metal edges higher; silver nears Rs 61,000


NEW DELHI: Gold prices edged higher on Tuesday as the US dollar eased. A weaker dollar makes greenback-priced bullion become more attractive for buyers holding other currencies.

Gold futures on

were trading higher, rising about 0.19 per cent or Rs 96 to Rs 50,831 per 10 grams. However, silver futures gained close to 0.40 per cent or Rs 241 to Rs 60,985 per kg.

Although bullion is often seen as an inflation hedge, higher interest rates and bond yields increase the opportunity cost of holding gold, which yields nothing.

Pritam Patnaik, Head – Commodities, Axis Securities said as the US dollar index shaved off its gains, the gold prices witnessed a small bounce back. “The US 10-year treasury yields rose, capping the upside of gold prices.”

It’s getting difficult to second guess the intended policy action of global central banks, which is keeping the gold markets range bound, he added. “We expect the range bound movement to continue.”

In the spot market, the highest purity gold was sold at Rs 51,005 per 10 grams while silver was priced at Rs 60,979 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped about Rs 500 per 10 grams in the last one week but have managed to hold above Rs 51,000 mark, whereas silver remained flat in the last one week, despite breaching Rs 61,000.

Trading Strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,820 and resistance at $1,860 per ounce. MCX Gold August futures support lies at Rs 50,500 and resistance at Rs 51,100 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets
Spot gold was up 0.2 per cent at $1,841.13 per ounce after largely range-bound trading on Monday. US gold futures firmed 0.1 per cent to $1,842.90.

Spot silver rose 0.5 per cent to $21.68 per ounce, platinum climbed 0.7 per cent to $937.88, and palladium gained 0.7 per cent to $1,859.40.



Source link