Gold futures on
were trading almost flat, shedding 0.01 per cent or Rs 3 to Rs 50,726 per 10 grams. However, silver futures traded lower, down by 0.17 per cent or Rs 104 at Rs 59,687 per kg.
Gold is seen as an inflation hedge; 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.
Pritam Patnaik, Head – Commodities, Axis Securities said the yellow metal went on to drop to its lowest levels in the last two weeks as central bankers remained firm in their resolve to battle inflation using rate hikes, even at the cost of short-term economic slowdown.
“Gold price will continue to remain rangebound owing to positive and negative factors playing on the metal’s price outlook,” he added.
In the spot market, the highest purity gold was sold at Rs 51,159 per 10 grams while silver was priced at Rs 59,853 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained flat in the last one to two weeks, whereas silver has plunged more than Rs 1,200 per kg in the last one week, the data suggests.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,810 and resistance at $1,830 per ounce. MCX Gold August futures support lies at Rs 50,500 and resistance at Rs 51,000 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was up 0.1 per cent at $1,818.31 per ounce. US gold futures also firmed 0.1 per cent to $1,819.70.
Spot silver was flat at $20.71 per ounce, platinum rose 0.3 per cent to $919.68, and palladium gained 0.8 per cent to $1,977.09. However, they were all still headed for monthly and quarterly losses.
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