Gold rate today: Yellow metal extends gains; silver tops Rs 58,500 on MCX

NEW DELHI: Gold prices moved higher on Friday after the US dollar took a breather. That said, the yellow metal was headed for a second straight weekly drop.

The US Federal Reserve’s hawkish policy narrative clouded the outlook for the non-yielding asset. The Fed raised interest rates by 75 basis points and Chair Jerome Powell vowed to ‘keep at’ their battle to beat down inflation.

Gold futures on

rose by 0.31% or Rs 156 to Rs 50,340 per 10 grams. Similarly, silver futures jumped sharply by 0.51 or Rs 299 to Rs 58,625 per kg.

Although gold is considered a hedge against inflation, higher interest rates increase the opportunity cost of holding the non-yielding asset.

ICICIDirect Research said gold prices tumbled yesterday and touched two-and-a-half-year low levels after the Federal Reserve Chairman Jerome Powell signalled the central bank was not finished raising interest rates.

“However, weaker-than-expected macroeconomic data from the US prevented further downside. Gold prices are expected to trade with a negative bias for the day amid a rise in the US dollar,” it said.

Global factory output weakened in October as widespread recession fears, high inflation and China’s zero-COVID policy hurt demand, business surveys showed, adding to persistent supply disruptions and darkening recovery prospects.

In the spot market, the highest purity gold was sold at Rs 50,114 per 10 grams while silver was priced at Rs 57,049 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped more than Rs 1,000 per 10 grams since October 10, whereas the spot prices of silver have gained more than Rs 3,600 per kg in the last four weeks.

Trading Strategy
Amit Khare, AVP-Research Commodities, Ganganagar Commodity said bullion charts are showing some recovery in daily charts, with an upside possible in the coming days. Momentum Indicator RSI is also indicating the same, he added.

He advised traders to make fresh buy potions with a support Rs 50,000-49,800 and resistance at Rs 50,350-50,600. For silver support lies at Rs 57,800-57000 and resistance at 58,700-59,400, Khare said.

Global markets
Spot gold was up 0.4% at $1,635.71 per ounce, as of 0243 GMT, but lost 0.4% so far this week. US gold futures rose 0.5% to $1,638.20.

Spot silver rose 0.4% to $19.54, platinum was flat at $918.68 and palladium gained 0.6% to $1,811.92.

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