gold price today: Gold rate today: Yellow metal trades flat; silver tops Rs 58,000 on MCX

NEW DELHI: Gold prices were trading flat on Thursday even as US dollar and Treasury yields fell on mounting expectations of slower monetary policy tightening by the Federal Reserve later in the year.

The dollar index was little changed after hitting its lowest level since September 20 earlier. A weaker dollar makes greenback-priced gold less expensive for overseas buyers.

Gold futures on

were trading flat, up 0.03 per cent or Rs 13 at Rs 50,700 per 10 grams. Similarly, silver futures were also unchanged at Rs 58,164 per kg.

Gold is considered a hedge against inflation, while higher interest rates increase the opportunity cost of holding the zero-yield bullion while boosting the dollar and bond yields.

In its morning report, ICICIDirect Research said that gold prices rose to a two-week high on Wednesday amid a sharp drop in the US dollar and US 10-year bond yields.

“Bullion prices were supported on expectations that the Federal Reserve would temper its aggressive rate hike stance from December,” it added. “Silver prices are likely to take cues from gold prices to trade in an upward trend.”

Top gold consumer China’s economy rebounded at a faster-than-anticipated clip in the third quarter but a more robust revival in the longer term will be challenged by persistent COVID-19 curbs, a prolonged property slump and global recession risks.

In the spot market, the highest purity gold was sold at Rs 50,751 per 10 grams while silver was priced at Rs 57,851 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have jumped as much as Rs 1,100 in the last two sessions, whereas silver in the spot market has eased about Rs 2,300 per kg during the same period under review.

Trading Strategy
“Gold and silver prices might witness some profit booking in today’s session. Gold has support at $1,655-1642, while resistance is at $1678-1688. Silver has support at $19.22-19.05, while resistance is at $19.62-19.80,” said Rahul Kalantri, VP Commodities, Mehta Equities.

“In rupee terms, gold has support at Rs 50,520-50,350, while resistance is at Rs 50,840, 51,080. Silver has support at Rs 57,480-56,910, while resistance is at Rs 58,480–58,810,” he added.

Global markets
Spot gold rose 0.3 per cent to $1,669.16 per ounce by 0116 GMT, after hitting a two-week high on Wednesday. US gold futures were up 0.3 per cent at $1,673.30.

Spot silver was little changed at $19.61 per ounce, platinum rose 0.1 per cent to $952.62 and palladium gained 0.8 per cent to $1,979.30.

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

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