Gold rate today: Yellow metal trades unchanged; silver barely holds Rs 57,000

NEW DELHI: Gold prices were trading flat, almost unchanged, on Monday as the firm US dollar dented the appeal for the yellow metal. The bullion was pinned near a nine-month low seen last week.

Gold marked a fourth straight weekly loss on Friday, having hit its lowest since late September a few sessions prior, hurt by the dollar’s ascent and bets for steep interest rate hikes gaining traction after healthy US jobs data.

Gold futures on

were trading flat, almost unchanged, down merely 0.02 per cent or Rs 4 at Rs 50,775 per 10 grams. Similarly, silver futures traded were mildly lower by 0.07 per cent or Rs 41 at Rs 57,090 per kg.

Benchmark US 10-year Treasury yields steadied near the previous session’s over one-week high, weighing on gold. Higher interest rates and bond yields increase the opportunity cost of holding non-yielding bullion.

Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver suffered heavy losses in the first half of the last week and dropped to their weakest levels since September 2021.

“The broad-based dollar strength amid growing recession fears and the worsening demand outlook for the yellow metal caused precious metals to close in the negative territory for the fourth straight week,” he added.

In the spot market, the highest purity gold was sold at Rs 50,853 per 10 grams while silver was priced at Rs 56,427 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have plunged more than Rs 1,400 in the last four trading sessions, whereas silver has plunged more than 1,700 per kg in the same period.

High global inflation had given some strength to gold prices earlier. Also, continuous selling pressure in the equity market has increased the demand for safe-haven assets, said Ravi Singh, Vice President and Head of Research, ShareIndia.

However, the cool-off in metal prices and a stronger dollar is mounting pressure on gold prices, he added. “Gold may remain sideways. The US inflation data due this week may be the key driver of the gold trend.”

Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,730 and resistance at $1,760 per ounce. MCX Gold August futures support lies at Rs 50,500 and resistance at Rs 51,100 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets
Spot gold held its ground at $1,742.08 per ounce at 0221 GMT. US gold futures dipped 0.2 per cent to $1,739.60.

Spot silver fell 0.4 per cent to $19.23 per ounce, and platinum slipped 1.2 per cent to $886.50. Palladium dropped 3 per cent to $2,116.89, after rising nearly 10 per cent on Friday.

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