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NEW DELHI: Gold prices in the domestic market traded lower, bucking the global trend, thanks to a weaker rupee. However, the weakness in the dollar curbed the losses.
The dollar index was off a two-decade high hit on Monday, while the benchmark 10-year yields pulled back from a two-month high hit in the previous session.
Gold futures on
were trading lower, down 0.20 per cent or Rs 100 at Rs 51,150 per 10 grams. However, silver futures tanked 0.62 per cent or Rs 341 at Rs 54,899 per kg.
The message from the world’s top finance chiefs is loud and clear — rampant inflation is here to stay and taming it will take an extraordinary effort, most likely a recession with job losses and shockwaves through emerging markets.
Pritam Patnaik, Head – Commodities, Axis Securities said profit booking in the greenback led to a brief rally in gold in yesterday’s trade.
“The prospects for gold don’t look too bright as an extremely hawkish Fed is going to go ahead with its aggressive rate hike plans,” he added with a suggestion to ‘sell on rise’.
Gold premiums in top consumer China jumped last week to their highest since October as a fall in global prices encouraged purchases, while demand cooled in India as buyers waited for a bigger price drop.
In the spot market, the highest purity gold was sold at Rs 51,265 per 10 grams while silver was priced at Rs 54,316 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have tanked Rs 1,200 per 10 grams in less than three months, whereas silver has dropped below Rs 55,000 per kg mark in more than a month.
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 50,900 and resistance at Rs 51,500 per 10 grams,” Tapan Patel, Senior Analyst (Commodities),
Securities.
Global markets
Spot gold ticked 0.1 per cent higher to $1,739.14 per ounce, as of 0058 GMT. Prices hit a one-month low of $1,719.56 on Monday. US gold futures rose 0.1 per cent to $1,751.7.
Spot silver dipped 0.1 per cent to $18.73 per ounce, platinum fell 0.2 per cent to $862.72 and palladium rose 0.4 per cent to $2,155.68.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)