Gold rate today: Yellow metal tops 2 week high, silver zooms 2% to hit Rs 64,000 on MCX

New Delhi: Gold prices moved higher to hit a two-week high on Thursday supported by a weaker dollar after US Federal Reserve Chair Jerome Powell’s speech signalled a slowdown in rate hikes.

Powell said that it was time to slow the pace of coming interest rate hikes while also signalling a protracted economic adjustment to a world where borrowing costs will remain high and inflation comes down slowly.

Gold futures on

were trading higher by 0.62% or Rs 330 at Rs 53,261 per 10 grams. Silver futures surged sharply by almost 2% or Rs 1,204 to Rs 64,665 per kg.

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Gold is seen as a hedge against inflation, which rising rates aim to tackle, thereby diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared with non-interest-bearing bullion.

NS Ramaswamy, Head of Commodities,

Securities, said that gold prices moved higher after US Federal Reserve Chair Jerome Powell signalled for smaller interest rate hikes in the coming FOMC meeting.

The dollar index dropped after the comment supporting the yellow metal. “On an intraday basis prices are expected to remain firm,” he said.

In the spot market, the highest purity gold was sold at Rs 52,777 per 10 grams while silver was priced at Rs 61,900 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have jumped more than Rs 1,300 per 10 grams in the last three weeks, whereas silver has remained almost flat during the same period under review.

The jump in gold is on the back of the US Fed Chair Jerome Powell’s speech that cemented the smaller rate hike expectation in their upcoming policy meetings, said Ravindra Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities.

“Although the smaller rate hike expectation has propped up gold prices, the gains may be capped as there is still no indication of an endpoint to the rate hikes,” he said. “The focus will now shift to the US non-farm payrolls print,” he added.

goldpricescitywise

Trading Strategy

“Bullion charts are looking positive. Momentum indicator RSI also indicates the same,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodity. He advised traders to make fresh buy positions in gold and silver.

He suggested buying gold and silver near given support levels at Rs 52,900-52,700 and Rs 63,200-62,700, respectively. He also advised profit booking near resistance levels at Rs 53,200-53,500 and Rs 64,000 and Rs 64,500, respectively.

Global markets

Spot gold rose 0.4% to $1,774.62 per ounce, as of 0241 GMT to hit its highest level since November 16. US gold futures climbed 1.6% to $1,788.70.

Spot silver edged up 0.2% to $22.24, platinum rose 0.7% to $1,040.13 and palladium gained 0.9% to $1,897.63.

(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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