Home NewsCommodities News Gold rate today: Yellow metal nurses wounds; silver hovers around Rs 57,000

Gold rate today: Yellow metal nurses wounds; silver hovers around Rs 57,000

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Gold rate today: Yellow metal nurses wounds; silver hovers around Rs 57,000


Gold prices edged up on Thursday from multi-month lows hit in the previous session. However, experts warn that the relief may be temporary. A higher dollar put pressure on safety bullion.

Gold Futures

It was trading even higher, up 0.29 percent or 148 rupees at 50,648 rupees per 10 grams. Likewise, traded silver futures rose 0.58% or 331 rupees to 57,057 rupees a kilo.

Worsening inflation has prompted Fed officials to move around sharply raising interest rates, minutes from the Fed’s June 14-15 policy meeting on Wednesday showed.

ICICIDirect said in its report that according to the minutes of the Fed’s meeting, most officials supported raising interest rates by 50 or 75 basis points at the next meeting in July to cool inflation. “Meanwhile, optimism in global markets and a rebound in U.S. 10-year yields weighed on gold prices,” it added.

India’s physical gold traders offered deep discounts last week as demand remained weak, with an import tax hike likely to further dampen interest, while top consumer China saw a slow rebound in activity after emerging from COVID-led restrictions.

In the spot market, gold of the highest purity sold at Rs 51,298 per 10 grams on Wednesday, while silver was sold at Rs 56,449 per kilo, according to the Gold and Silver Jewellers Association of India.

Gold spot prices plunged by more than Rs 1,000 compared to the previous session, while silver prices fell by more than Rs 1,700 per kilo over the same period.

Rahul Kalantri, vice president of commodities at Mehta Equities, said gold’s losses extended to a more than nine-month low on the back of a stronger dollar, while the Fed’s June meeting minutes established a more “restrictive” monetary policy.

“The EU appears to be at the highest risk due to the energy crisis and rising inflation as the euro hits a fresh 20-year low. Investors are building short positions in precious and industrial metals and betting on the dollar,” he added.

Trading Strategy “We expect gold to trade sideways on the day with COMEX spot gold support at $1,720 and resistance at $1,760 an ounce. MCX gold August support at Rs 50,200 and resistance at Rs 51,000 per 10 grams,” Tapan Said Patel, Senior Analyst (Commodities),

securities.

Spot gold on global markets rose 0.3 percent to $1,744.19 an ounce, as the dollar retreated slightly from a 20-year high hit on Wednesday, providing support for dollar-denominated gold. U.S. gold futures rose 0.3 percent to $1,741.80.

Spot silver was up 0.7% at $19.32 an ounce, platinum was up 0.2% at $857.53 and palladium was up 1.2% at $1,927.92.

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

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