Gold rate today: Yellow metal tops Rs 49,000; silver gains Rs 180

NEW DELHI: Gold prices inched higher on Wednesday but analysts warned that a sharp rise in the prices makes the yellow metal vulnerable to corrections, especially if the US dollar holds firm.

Gold futures on MCX were trading marginally higher by 0.11 per cent or Rs 53 at Rs 49,090 per 10 grams. Silver futures were up 0.27 per cent or Rs 179 at Rs 66,413 per kg.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said that gold jumped to fresh June highs yesterday but failed to sustain and ended lower. “Gold is struggling to build on recent momentum amid increased debate about Fed’s monetary tightening amid some upbeat economic data and mixed comments from central banks. Gold’s sharp rise has made it vulnerable to profit-taking and we may see some correction if the US dollar manages to hold firm,” he added.

In the spot market, the highest purity gold was sold at Rs 49,553 per 10 grams while silver was priced at Rs 66,883 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot price of gold has jumped more than Rs 1,850 per 10 grams after Diwali, whereas silver has gained about Rs 3,300 per kg during the period under review.

Ravi Singh, Vice President & Head of Research, Share India said inflation concerns have increased the safe-haven appeal which is providing support to gold prices.

Trading strategy
“We expect gold prices to trade sideways to down for the day after initial recovery with support at $1845 and resistance at $1870 per ounce. MCX Gold December support lies at Rs. 48900 and resistance at Rs. 49400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold rose 0.2 per cent to $1,854.39 per ounce by 0207 GMT, but the metal was still only about $6 shy off its lowest level since last Friday hit in the previous session. US gold futures gained 0.2 per cent to $1,857.10.

Spot silver rose 0.6 per cent to $24.95 per ounce. Platinum rose 0.3 per cent to $1,064.73 and palladium gained 0.3 per cent to $2,165.98.