Gold rate today: Yellow metal gains but poised for 4th weekly fall

NEW DELHI: Gold prices inched higher on Friday but were poised for a fourth straight weekly fall as investors eyed key US inflation numbers.

Inflation numbers could provide clues on the Federal Reserve’s next policy move. Bullion prices have fallen in the week as investors worried about higher inflation.

Gold futures on MCX were up 0.14 per cent or Rs 69 at Rs 48,008 per 10 grams. Silver futures were marginally up 0.07 per cent or Rs 41 at Rs 60,839 per kg.

Gold prices this week remain under pressure due to higher US treasury yields and a stronger dollar, said Ravi Singh, Vice President & Head of Research, ShareIndia.

“Traders are looking ahead to the US November consumer price index report to get a clear understanding of the Fed’s plan on bond tapering,” he added.

In the spot market, the highest purity gold was sold at Rs 47,968 per 10 grams while silver was priced at Rs 60,988 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold and silver have remained almost flat in the last one week. In the last two weeks, silver has shown more weakness compared to the yellow metal.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1760 and resistance at $1790 per ounce. MCX Gold February support lies at Rs 47600 and resistance at Rs 48300 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold rose 0.1 per cent to $1,776.23 per ounce by 0057 GMT. U.S. gold futures gained 0.1 per cent to $1,778.60.

Spot silver rose 0.2 per cent to $21.97 an ounce but was headed for a fourth consecutive weekly drop. Platinum climbed 0.3 per cent to $937.07, en route to its first weekly rise in four. Palladium fell 0.2 per cent to $1,809.40.