Most investors expect the Fed to deliver a 50-basis point rate hike at its final meeting of 2022 scheduled on December 13-14. Market participants also await the November Consumer Price Index (CPI) report.
Gold futures on
were trading higher, gaining 0.36% or Rs 196 at Rs 54,247 per 10 grams. However, silver futures jumped 0.78% or Rs 522 at Rs 67,556 per kg.
“Gold prices climbed amid a decline in the US dollar index while investors positioned themselves ahead of key US inflation data and the Federal Reserve’s policy meeting due next week,” said ICICIDirect Research.
“Gold prices are expected to trade with a positive bias for the day amid weakness in dollar and on expectations that the US Fed will remain less aggressive in raising interest rates from this month,” it added.
High interest rates have weighed on gold’s traditional status as a hedge against inflation and other uncertainties this year, as they translate into higher opportunity cost of holding the non-yielding metal.
Physical gold demand stalled in India last week on higher prices, while premiums fell in top consumer China as Covid-19 restrictions dulled activity.
In the spot market, highest purity gold was sold at Rs 53,780 per 10 grams while silver was priced at Rs 65,358 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have jumped about Rs 2,300 per 10 grams in the last four weeks, whereas silver has gained more than Rs 4,200 per kg during the same period under review.
Rahul Kalantri, VP Commodities, Mehta Equities, said that gold and silver prices were steady to positive as the dollar index slipped once again amid gains in other major global currencies and supported both the precious metals.
“Traders are awaiting the US inflation data for November, which will be announced today,” he said. “The Chinese central bank increased its gold reserves by 32 metric tonnes in November and its first increase since 2019,” he added.
“Bullions charts are looking positive for the day, Momentum Indicator RSI is also indicating the same,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodity. He advised traders to make fresh long positions.
He suggested buying gold and silver near given support levels at Rs 53,900-53,800 and Rs 66,700-66,200, respectively. He also advised profit booking near resistance levels at Rs 54,200-54,350 and Rs 67,400-67,800, respectively.
Spot gold was up 0.2% at $1,793.16 per ounce, as of 0241 GMT, but fell 0.3% so far this week. US gold futures rose 0.2% to $1,804.80.
Spot silver edged 0.6% higher to $23.20, platinum rose 0.4% to $1,006.91. Palladium lost 0.4% to $1,918.50, but was headed for a second straight weekly gain.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)