Gold rate today: Yellow metal trades flat; silver marches towards Rs 56,000

NEW DELHI: Gold prices were trading almost flat on Wednesday as the weakness in the dollar was balanced by rate-hike fears by the US Fed next week.

The yellow metal failed to make the most of a pullback in the dollar, with demand for bullion being restrained amid prospects of aggressive monetary policies and rising US bond yields.

Gold futures on

were trading merely higher by about 0.05 per cent or Rs 23 at Rs 50,343 per 10 grams. However, silver futures traded higher by 0.18 per cent or Rs 102 at Rs 55,829 per kg.

Comex gold prices traded flat amid disappointing macroeconomic data from the US, said ICICIDirect. At the same time, weakness in the US dollar index supported bullion prices on the lower side.

“However, rise in risk appetite in US markets coupled with an increase in US 10-year treasury yields weighed on bullion prices,” it added.

In the spot market, the highest purity gold was sold at Rs 50,678 per 10 grams while silver was priced at Rs 55,563 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have tumbled more than Rs 1,550 per 10 grams in the last two weeks, whereas silver has plunged about Rs 2,500 per kg in just one session.

Last week’s weakness in the dollar has limited the selling pressure in gold prices, said Ravi Singh, Vice President and Head of Research, ShareIndia. He expects gold to remain sideways until some fresh trigger moves the prices.

“However, the weakness in Euro against dollar suggests that the ECB has been more reluctant to raise rates fearing the potential of a deeper recession that arises due to interest rate hikes,” he added.

Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,700 and resistance at $1,720 per ounce. MCX Gold August support lies at Rs 50,100 and resistance at Rs 50,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),

securities.

Global markets
Spot gold was flat at $1,711.00 per ounce. US gold futures fell 0.1 per cent to $1,708.80.

Spot silver firmed 0.2 per cent to $18.77 per ounce, platinum rose 0.5 per cent to $879.02, and palladium climbed 1 per cent to $1,895.17.

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