A dip in the US dollar and treasury yields boosted demand for the safe-haven metal amid heightened worries over a global economic slowdown.
Gold futures on
were trading lower by 0.19 per cent or Rs 96 at Rs 51,530 per 10 grams. Silver futures retreated 0.17 per cent or Rs 100 at Rs 58,270 per kg.
Pritam Patnaik, Head – Commodities, Axis Securities said the worsening global economy has helped boost demand for safe-haven gold, and a weakening dollar and falling bond yields are further supporting the cause.
“The change in trend is due to the hawkish tone adopted by the US Fed and worsening economic conditions in the US. We expect gold to face some resistance around $1,800, but every dip will be a good buying opportunity,” he added.
In the spot market, the highest purity gold was sold at Rs 51,668 per 10 grams while silver was priced at Rs 58,379 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have increased more than Rs 900 per 10 grams in the last two weeks, whereas silver advanced to close to Rs 4,200 per kg in the same period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,760 and resistance at $1,790 per ounce. MCX Gold October support lies at Rs 51,200 and resistance at Rs 51,800 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was up 0.3 per cent at $1,777.20 per ounce, its highest level since July 5. US gold futures gained 0.4 per cent to $1,794.20 per ounce.
Spot silver fell 0.4 per cent to $20.26 per ounce, platinum was steady at $906.94, while palladium rose 1 per cent to $2,215.12.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)