Gold rate today: Yellow metal trades flat; silver slips below Rs 62,000

NEW DELHI: Gold prices were trading flat on Friday despite a pullback in the US dollar. However, hawkish comments from the US Fed officials over more interest rate hikes weighed on the sentiments of the bullion.

Gold futures on

were almost unchanged at Rs 52,844 per 10 grams. Meanwhile, silver futures jumped 0.43% or Rs 262 to Rs 61,240 per kg.

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.

“Gold prices ended on a negative note amid a strong dollar and surge in US treasury yields. Hawkish statements from Fed officials led market enthusiasm to fade about a potential slowdown in rate hike,” said ICICIDirect Research.

Gold prices are expected to trade with a negative bias for the day on the back of a strong dollar and a rise in US treasury yields, it added. “Gold may slip as several US Fed officials suggested that interest rates would continue to rise.”

A spike in domestic prices put off gold consumers in India last week and prompted dealers to offer discounts, with higher rates playing spoilsport in China as well.

In the spot market, the highest purity gold was sold at Rs 52,894 per 10 grams while silver was priced at Rs 61,253 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold dropped below Rs 53,000 levels, whereas spot prices of silver have plunged about Rs 1,350 per kg.

NS Ramaswamy, Head of Commodities,

Securities said that gold was headed for a weekly fall on Friday as the recent rally fizzled after several US Fed officials suggested that interest rates would continue to rise.

Swiss gold exports to China and Turkey remained strong in October while shipments to India fell, Swiss customs data showed on Thursday, he said.

Trading Strategy
Bullion charts are looking positive and momentum indicator RSI is also indicating the same, said Amit Khare, AVP- Research Commodities, Ganganagar Commodity.

He suggested traders to make fresh buy positions in gold and silver near given support levels at Rs 52,700-52,500 and Rs 60,500-60,000, respectively. He also advised profit booking near resistance levels at Rs 53,000-53,200 and Rs 61,200 and Rs 61,800, respectively.

Global markets
Spot gold rose 0.1% to $1,763.17 per ounce by 0303 GMT, en route to a weekly decline of about 0.4%. US gold futures were up 0.2% to $1,765.50.

Among other metals, spot silver rose 0.8% to $21.11 per ounce, platinum added 0.4% to $984.50, and palladium climbed 0.7% to $2,020.21. All were, however, on course to end the week lower.

(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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