Home NewsCommodities News Gold rate today: Yellow metal holds Rs 53,000 on MCX; silver trades flat

Gold rate today: Yellow metal holds Rs 53,000 on MCX; silver trades flat

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Gold rate today: Yellow metal holds Rs 53,000 on MCX; silver trades flat

Gold prices ticked up on Wednesday before trading flat, aided by a dip in the US dollar. Investors will now focus on Federal Reserve Chair Jerome Powell’s speech for insights into the US central bank’s monetary policy path.

Powell’s speech at a Brookings Institution event, scheduled for 18.30 GMT, will be evaluated for any new clues on the US central bank’s plans for rate hikes next year.

Gold futures on

were trading higher by 0.10% or Rs 51 at Rs 53,035 per 10 grams. However, silver futures traded flat at Rs 62,830 per kg.

Gold is seen as a hedge against inflation, which rising rates aim to tackle, thereby diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared to non-interest-bearing bullion.

NS Ramaswamy, Head of Commodities,

Securities, said that gold traded almost flat in Asian hours ahead of Jerome Powell’s speech later in the day. “Consumer inflation in the United States has been at the highest level in decades, prompting the Federal Reserve to take aggressive steps to raise interest rates and cool the economy,” he added.

In the spot market, the highest purity gold was sold at Rs 52,775 per 10 grams while silver was priced at Rs 61,685 per kg on Tuesday, according to the Indian Bullion and Jewelers Association.

The spot prices of gold have remained below Rs 53,000 per 10 grams for more than two weeks, whereas silver has dropped about Rs 1,000 per kg during the same period under review.

Gold prices are headed for their best monthly gains of more than 4% in the last seven months as the Fed signals a dovish rate hike outlook in the coming months, said Deveya Gaglani, Research Analyst, Axis Securities.

“Recent tech layoffs in the USA and other parts of the world impacted Consumer confidence numbers in the USA which dropped to a four-month low,” he said. “The current economic scenario and geopolitical tension may support bullion prices,” he added.

Trading Strategy“Bullion charts are looking positive. Momentum indicator RSI also indicates the same,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodity. He advised traders to make fresh buy positions in gold and silver.

He suggested buying gold and silver near given support levels at Rs 52,900-52,700 and Rs 62,500-62,000, respectively. He also advised profit booking near resistance levels at Rs 53,200-53,500 and Rs 63,200 and Rs 63,800, respectively.

Global markets Spot gold was up 0.1% at $1,751.89 per ounce, as of 0245 GMT. US gold futures rose 0.1% to $1,765.40.

Spot silver slipped 0.1% to $21.25. Platinum was up 0.3% to $1,004.75 and palladium rose 1.2% to $1,856.17.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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