The Fed is on track for half a point interest rate increases at June and July policy meetings, and Friday’s jobs report raised the possibility of rate hikes even further.
Gold futures on
were trading with gains of 0.30 per cent or Rs 153 at Rs 51,123 per 10 grams. However, silver futures zoomed 1.25 per cent or Rs 772 to Rs 62,441 per kg.
Ravi Singh, Vice President and Head of Research, ShareIndia said this week gold may witness volatility on account of key data and events which may trigger the price momentum.
“ECB meeting, US inflation data and RBI MPC meeting will likely influence gold prices. Movement of the dollar index and US treasury yields will be the key driver of gold prices,” he added.
Gold discounts widened in India last week as demand faltered due to a rise in prices and a winding up of the wedding season, while consumers remained wary of purchasing bullion in top consumer China amid a gradual relaxing of Covid restrictions.
In the spot market, the highest purity gold was sold at Rs 51,455 per 10 grams while silver was priced at Rs 62,788 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained close to Rs 1,000 per 10 gram levels in three weeks, whereas silver has advanced close to Rs 3,700 per kg in the same period.
The US economy added 390,000 jobs in May, better than the expected 325,000 despite fears of an economic slowdown, the Bureau of Labor Statistics data showed on Friday, said ICICIDirect in its note.
“However, pessimistic sentiments in US markets and rising inflationary pressures restricted further downsides in safe-haven assets,” it added.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,840 and resistance at $1,870 per ounce. MCX Gold Aug support lies at Rs 50,800 and resistance at Rs 51,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was up 0.1 per cent at $1,853.43 per ounce, as of 0208 GMT, while US gold futures rose 0.3 per cent to $1,856.20.
In other metals, silver climbed 1.5 per cent to $22.24 per ounce and palladium added 1.6 per cent to $2,007.18. Platinum rose 0.6 per cent to $1,019.79 per ounce, after hitting its highest since late March at $1,032.50 on Friday.