Gold futures on
were trading lower by 0.43 per cent or Rs 224 at Rs 51,402 per 10 grams. However, silver futures plunged about 0.66 per cent or Rs 383 to Rs 57,987 per kg.
Growing concerns over rising inflation and geopolitical uncertainty boosted demand for bullion prices, said ICICIDirect in its morning report. “However, strong economic data from the US prevented further gains”
Making greenback-denominated gold less expensive for other currency holders, the dollar languished near three-week lows against its rivals. Benchmark US 10-year Treasury yields were hovering near a four-month low.
India launched its first international bullion exchange on Friday as the world’s second-biggest consumer of precious metal tries to bring transparency to the market for precious metal.
In the spot market, the highest purity gold was sold at Rs 51,466 per 10 grams while silver was priced at Rs 57,553 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have jumped Rs 1,100 per 10 grams in the last two weeks, whereas silver advanced close to Rs 2,800 per kg in the same period under review.
Gold prices rebounded after the Fed’s tone towards rate hike changed from hawkish to mildly hawkish and weak US GDP data in the second successive quarter has pulled down the dollar index, said Ravi Singh, Vice President and Head of Research, ShareIndia.
“The demand for safe-haven assets has revived among investors. Bond yields also fell on softening of the dollar index and weak GDP data,” he added.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,754 and resistance at $1,780 per ounce. MCX Gold October support lies at Rs 51,200 and resistance at Rs 51,900 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was little changed at $1,764.32 per ounce after hitting its highest since July 6 at $1,767.79 on Friday. US gold futures eased 0.1 per cent to $1,779.90 per ounce.
Elsewhere, spot silver fell 0.7 per cent to $20.17 per ounce, platinum was down 0.3 per cent at $893.99, and palladium slipped 1.4 per cent to $2,099.68.
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