Gold rate today: Yellow metal rises by Rs 95; rising dollar capping gain

NEW DELHI: Gold and silver futures traded in the green on Wednesday, bucking the trend in the international market. However, the gains were capped by a firm dollar, which usually makes things difficult for bullion holders.

The dollar index held steady, having seen its best daily percentage gain in nearly a month late Tuesday. A stronger dollar makes gold more expensive for other currency holders.

Gold futures on MCX were up 0.20 per cent, or Rs 95, at Rs 47,984 per 10 gram. Silver futures rose 0.06 per cent, or Rs 38, to Rs 69,119 per kg.

“The yellow metal kept firm trading throughout the day on a weaker dollar ahead of US data. Gold prices rose in the evening session after US CPI numbers climbed higher than market forecast. The market players are now awaiting for Fed Chairman Testimony to find fresh triggers,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

“Gold may remain choppy unless there is a clear trend in the US dollar. However, buying interest may emerge at lower amid increasing emphasis on keeping interest rate low.”

Physical gold in India was sold at a discount last week for the first time in 2021 as a spike in coronavirus cases prompted strict restrictions and kept buyers away. In the spot market, highest purity gold was sold at Rs 46,791 while silver was priced at Rs 67,800 on Friday, according to the Indian Bullion and Jewellers Association.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,795 and resistance at $1,820 per ounce. MCX Gold August support lies at Rs 47,500 and resistance at Rs 48,200 per 10 gram,” said Tapan Patel.

Global markets
Spot gold was flat at $1,806.07 per ounce, as of 0057 GMT. US gold futures were 0.2 per cent lower at $1,807.20 per ounce.

Silver was flat at $25.97, palladium and platinum were up 0.1 per cent at $2,830.14 and $1,105.02, respectively.