Gold rate today: Yellow metal trades marginally lower,silver weakens further

NEW DELHI: Gold prices were marginally down on Tuesday, hitting multi-month lows as the firm US dollar dented the appeal of the safe-haven metal. Strength in the US dollar makes greenback-priced gold more expensive for buyers holding other currencies.

Traders awaited the US consumer price index data, a key measure of inflation, set to be released on Wednesday. It is expected to show that prices rose 8.8 per cent in June from a year earlier.

Gold futures on

were trading flat, gaining merely 0.06 per cent or Rs 31 at Rs 50,675 per 10 grams. However, silver futures traded lower by 0.30 per cent or Rs 172 at Rs 56,753 per kg.

Higher interest rates increase the opportunity cost of holding bullion, which yields no interest. Benchmark US 10-year Treasury yields eased, somewhat buoying demand for gold.

Pritam Patnaik, Head – Commodities, Axis Securities said that gold prices have been under sustained pressure thanks to the surging dollar.

He expects the trend to remain negative to sideways as the currency has managed to maintain pressure over the precious metal and a higher inflation number will force the Fed to take aggressive rate hikes.

In the spot market, the highest purity gold was sold at Rs 50,877 per 10 grams while silver was priced at Rs 56,745 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have plunged more than Rs 1,300 in the last one week, whereas silver has plunged about Rs 1,400 per kg in the same period of review.

Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,720 and resistance at $1,750 per ounce. MCX Gold August support lies at Rs 50,200 and resistance at Rs 50,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets
Spot gold was up 0.1 per cent at $1,734.97 per ounce, after hitting its lowest since September 30 of $1,722.36 earlier in the session. US gold futures firmed 0.2 per cent to $1,734.20.

Spot silver rose 0.3 per cent to $19.14 per ounce, platinum dipped 0.7 per cent to $863.82, and palladium dropped 1 per cent to $2,140.80.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Source link

Recent Posts

Scan to Download
ios&Android APP

Open trading account and start trading!

Join our happy customers