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Gold prices were trading mildly higher on Monday as the weakening US dollar buoyed greenback-priced bullion, although gains were capped by some investors turning to riskier assets in Asia.
Federal government offices, stock and bond markets, and the Federal Reserve will be closed on Monday for the Memorial Day holiday in the United States.
Gold futures on
were trading with decent gains of 0.09 per cent or Rs 45 at Rs 51,095 per 10 grams. However, silver futures were trading higher by 0.26 per cent or Rs 159 at Rs 62,275 per kg.
A weaker dollar makes bullion more attractive for buyers holding other currencies. Higher short-term US interest rates raise the opportunity cost of holding non-yielding bullion
Disappointing macroeconomic data from the US lifted demand for safe-haven assets, said ICICIDirect Research. “However, optimistic sentiments in global markets and rebound in the US 10 year bond yields capped further gains in bullion prices.”
US consumer sentiment slumped to 58.40 levels in May 2022 compared to 65.50 levels in the previous month, the lowest level in nearly 11 years on worries about inflation, it added.
In the spot market, the highest purity gold was sold at Rs 51,204 per 10 grams while silver was priced at Rs 62,538 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained about Rs 900 per 10 grams in the last two weeks, whereas silver has gained more than Rs 3,400 per kg in the same period under review.
Gold may witness lower liquidity and range bound trade on account of holidays in the US. The recent poor performance in the equity market and dented demand of China have affected the gold prices, said Ravi Singh, Vice President and Head of Research, ShareIndia.
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“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 June support lies at Rs 50,600 and resistance at Rs 51,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),
Securities.
Global markets
Spot gold was up 0.2 per cent at $1,856.86 per ounce, as of 0152 GMT. US gold futures edged 0.1 per cent higher to $1,859.40.
Spot silver rose 0.1 per cent to $22.13 per ounce, platinum
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