Gold futures on MCX were up 0.13 per cent or Rs 64 at Rs 47,861 per 10 grams. Silver futures were up 0.41 per cent or Rs 271 at Rs 65,926 per kg. Global inflation worries and renewed Covid related restrictions in Russia and some parts of Europe may add risk premium in the prices.
Globally, the spot gold was little changed at $1,792.95 per ounce while the US gold futures fell 0.1 per cent to $1,793.70. Spot silver was flat at $24.31 per ounce. Platinum rose 0.1 per cent to $1,041.26 per ounce and palladium gained 0.7 per cent to $2,035.77.
The metal had rallied to its highest level since early September on Friday before trimming gains on Fed Chair Jerome Powell’s comments on tapering. Powell said it was not time for the Fed to raise interest rates, especially given employment was still low.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion that pays no interest.
Ravi Singh, Vice President & Head of Research, Share India said, “The report along with festive demand in India made the gold prices highly volatile last Friday.”
In the spot market, the highest purity gold was sold at Rs 47,805 per 10 grams while silver was priced at Rs 65,294 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained almost Rs 900 per 10 grams in the last two weeks, whereas silver has risen nearly Rs 3,900 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,780 and resistance at $1,810 per ounce. MCX Gold December support lies at Rs 47,500 and resistance at Rs 48,100 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities said.
