Gold rate: Yellow metal trade higher; silver marches towards Rs 58,000

NEW DELHI: Gold prices moved higher on Thursday, despite a rise in the US dollar. A pullback in the US Treasury yields also added to the bullion’s appeal.

After a couple of strong economic readings this week, the focus now shifts to US jobs data due on Friday that could offer more clarity on Fed’s aggressive tightening to fight stubborn inflation.

Gold futures on

were trading sharply higher by 0.66 per cent or Rs 339 at Rs 51,728 per 10 grams. However, silver futures added 0.34 per cent or Rs 194 at Rs 57,748 per kg.

Benchmark US 10-year Treasury yields slipped from a more than one-week high, reducing the opportunity cost of holding non-interest-bearing gold. Rising US interest rates dull non-yielding gold’s appeal.

Ravindra V Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities said that market players are positioning for Bank of England interest rate decision as the central bank is expected to fasten rate hikes to control inflation.

“ETF outflows however show weaker investor interest in the metal despite price recovery. Gold may remain volatile as market players react to data and central bank stance,” he added.

In the spot market, the highest purity gold was sold at Rs 51,566 per 10 grams while silver was priced at Rs 57,309 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have jumped about Rs 750 per 10 grams in the last eight trading sessions, whereas silver has gained close to Rs 2,500 per kg in the same period under review.

Gold prices are showing a mixed trend on the back of volatility in the dollar and fear of tension between the US and China on the visit of House Speaker Nancy Pelosi to Taiwan, said Ravi Singh, Vice President and Head of Research, ShareIndia.

“The outcome of the OPEC meeting is also closely watched by market participants. Gold may remain range bound for some more trading sessions,” he added.

Trading Strategy
Rahul Kalantri, VP Commodities, Mehta Equities said gold has support at $1,751-1,740, while resistance is at $1,774-1,782. Silver has support at $19.68-19.45, while resistance is at $20.20-20.42.

“In rupee terms, gold has support at Rs 52,150–51,820, while resistance is at Rs 52,580–52,740,” he said. “Silver has support at Rs 57,150-56,640, while resistance is at Rs 58,080–58,510.”

Global markets
Spot gold held its ground at $1,767.39 per ounce. US gold futures rose 0.4 per cent to $1,783.90.

Spot silver fell 0.4 per cent to $19.97 per ounce, platinum was down 0.2 per cent at $896, and palladium eased 0.3 per cent to $2,011.42.

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