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NEW DELHI: Bucking global trends, gold and silver futures rose on Wednesday. Gains were, however, limited by a rise in the dollar and US Treasury yields on growing expectations of an earlier-than-anticipated interest rate liftoff.
The dollar index hovered near a more than 10-month high touched on Tuesday. The benchmark US 10-year Treasury yields held close to over three-month peak, increasing the opportunity cost of holding non-interest bearing bullion.
Gold futures on MCX were up 0.18 per cent or Rs 84 at Rs 46,040 per 10 gram. Silver futures advanced 0.17 per cent or Rs 104 to Rs 60,568 per kg.
“Weighing on gold price is firmness in US dollar, increased expectations of Fed’s monetary tightening and continuing ETF outflows. However, supporting prices are increasing challenges to the global economy amid rising inflationary pressure, concerns about the health of the Chinese economy and mixed economic data from major economies and political wrangling over US debt ceiling limit,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, highest purity gold was sold at Rs 45,957 while silver was priced at Rs 59,628 on Tuesday, according to the Indian Bullion and Jewellers Association.
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 $1,760 per ounce. MCX Gold October support lies at Rs 45,600 and resistance at Rs 46,100 per 10 gram,” said Patel.
Global markets
Spot gold was flat at $1,735.17 per ounce by 0123 GMT. On Tuesday, prices fell to their lowest level since Aug 11 to $1,726.19. US gold futures were little changed at $1,735.90.
China’s net gold imports via Hong Kong in August fell modestly from the previous month, Hong Kong Census and Statistics Department data showed on Tuesday.
Silver rose 0.1 per cent to $22.46 per ounce. Platinum eased 0.1 per cent to $966.03, while palladium rose 1 per cent to $1,895.47.