Gold rate today: Yellow metal continues to gain; silver nears Rs 59,000

NEW DELHI: Gold prices in India continued to move higher on Tuesday, with the yellow metal trading above Rs 52,000 level.

Gold futures on

were trading higher, up 0.15 per cent or Rs 80 at Rs 52,202 per 10 grams. Similarly, silver futures traded higher, up by 0.43 per cent or Rs 252 to Rs 58,740 per kg.

Gold is seen as an inflation hedge, although higher short-term US interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest. A firm US dollar makes gold less attractive for buyers holding other currencies.

Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities said the gold prices were supported by lower bond yields, inflation concerns and increasing growth worries and renewed virus concerns in China.

“However, weighing on price is the monetary tightening stance of Fed and other central banks, firmness in the US dollar and continuing ETF outflows and a possible slowdown in Indian demand due to import duty hike,” he added.

Physical gold dealers in India offered steep discounts last week as demand remained weak, with the import tax hike likely to further sap interest, while top consumer China saw activity bounce back slowly as it emerged from COVID-led curbs.

In the spot market, the highest purity gold was sold at Rs 52,218 per 10 grams while silver was priced at Rs 58,123 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have gained about Rs 1,100 in the last one week, whereas silver has plunged more than 2,700 per kg in the same period under review.

Gold prices may witness some selling pressure as investors are waiting for the publication of US Fed meeting minutes on Wednesday, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“It is also expected that the Fed may increase another 75 bps interest rate this month, however, if more aggressive steps are taken then we may see another leg of sell-off in gold prices,” he added.

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“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,800 per ounce and resistance at $1,830 per ounce. MCX Gold August support lies at Rs 51,900 and resistance at Rs 52,500 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

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Spot gold was flat at $1,809.45 per ounce. US gold futures rose 0.5 per cent to $1,809.90.

Spot silver gained 0.7 per cent to $20.09 per ounce, while platinum fell 0.3 per cent to $883.39, and palladium firmed 0.1 per cent to $1,924.60.

(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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