The U.S. economy unexpectedly contracted in the second quarter, raising the risk of an economic slowdown, boosting gold’s safe-haven appeal.
It traded up 0.12 percent or 62 rupees to 51,505 rupees per 10 grams. However, silver futures rose more than 0.59 percent or 341 rupees to 57,960 rupees a kilo.
Gold price today
Gold is unlikely to avoid its worst monthly decline since November 2020. The dollar hovered near 20-year highs for most of July, hitting demand for dollar-denominated gold among holders of other currencies.
Gold prices rose after Federal Reserve Chairman Jerome Powell suggested the central bank may slow the pace of interest rate hikes in the coming months, ICICIDirect said in its morning report.
“Disappointing macroeconomic data in the U.S. boosted demand for precious metals,” it added. “The U.S. economy unexpectedly contracted in the second quarter, with consumer spending growing at the slowest pace in two years.”
In the spot market, gold of the highest purity sold at Rs 51,222 per 10 grams on Thursday, while silver was sold at Rs 55,972 per kilo, according to the Gold and Silver Jewellers Association of India.
Gold spot prices have risen by Rs 1,250 per 10 grams over the past week, while silver has risen to Rs 2,100 per kilo over the same period.
Ravi Singh, vice president and head of research at ShareIndia, said gold is attractive as a safe haven due to soaring inflation and heightened recession fears.
“As long as these two factors continue to dominate sentiment – the scenario for further gains in gold prices remains intact. Every dip is a good opportunity to be long,” he added.
Trading strategy “We expect gold to trade sideways on the day with COMEX spot gold support at $1,740 and resistance at $1,770 an ounce. MCX gold August support at Rs 50,900 and resistance at Rs 51,600 per 10 grams,” Tapan Said Patel, Senior Analyst (Commodities),
Spot gold on global markets rose 0.2% to $1,758.94 an ounce. U.S. gold futures rose 0.3 percent to $1,775.10. Gold prices have risen 1.9% since mid-May.
Spot silver was up 0.3% at $20.04 an ounce, while platinum was down 0.2% at $886.24. Both face monthly losses. Palladium rose 0.8% to $2,095.13, having gained about 8.2% this month, its highest since January.
(Disclaimer: Advice, advice, views and opinions given by experts are their own. These do not represent the views of The Economic Times)