Gold price today: Yellow metal gains Rs 1,400 per 10 gram in a week

NEW DELHI: Gold prices were little changed on Wednesday, moving mildly higher. The precious metal was caught between a firmer dollar and safe-haven demand driven by the Delta coronavirus variant fears.

Gold futures on MCX were up 0.21 per cent, or Rs 98, at Rs 47,378 per 10 gram. Silver futures gained 0.34 per cent, or Rs 215, at Rs 63,441 per kg.

The dollar hit a nine-month high against the euro on Wednesday and held near recent peaks on other majors. Uncertainty towards Fed’s monetary policy and increasing global tensions may support prices.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold is choppy amid mixed US economic data and mixed comments from Fed officials which have added to uncertainty about Fed’s monetary policy.

“Support from safe haven buying amid rising virus cases, slowdown in China and geopolitical tensions relating to Afghanistan is countered by weaker investor interest amid continuing strength in equities. Gold may remain choppy,” he added.

Physical gold demand in Asia has gained momentum in the largest bullion consumers of the world, with premiums increasing in top consumers India and China.

In the spot market, highest purity gold was sold at Rs 47,583 per 10 gram while silver was priced at Rs 63,936 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The spot price of the yellow metal has surged by about Rs 1,400 in the last one week, whereas silver has risen about Rs 1,100 during the same period.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,770 and resistance at $1,810 per ounce. MCX Gold October support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold was flat at $1,785.66 per ounce by 0103 GMT, after hitting its highest since Aug 6 at $1,795.25 on Tuesday. US gold futures were flat at $1,787.20.

Silver rose 0.1% to $23.65 per ounce. Platinum rose 0.2% to $999.53 after falling 2.5% in the previous session. Palladium rose 1.1% to $2,516.22, having tumbled 4.5% on Tuesday.