Gold futures on MCX were trading higher by 0.27 per cent or Rs 131 at Rs 48,103 per 10 gram. Silver futures were up 0.61 per cent or Rs 391 at Rs 64,723 per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said gold trades higher supported by a drop in US bond yields as Fed decided to take a gradual approach on monetary tightening while inflation concerns also supported the yellow metal.
“However, weighing on price is the upbeat US jobs report, continuing strength in equity markets and ETF outflows. Gold has rallied sharply in the last few sessions amid lack of any aggressive move by Fed but it may struggle to build on the gains amid improved risk sentiment,” Rao added.
Physical gold demand in India, meanwhile, jumped during the festival season last week.
In the spot market, the highest purity gold was sold at Rs 47,702 per 10 gram while silver was priced at Rs 63,551 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has eased about Rs 250 per 10 gram in November thus far, whereas silver has shed about Rs 500 per kg during the period under review.
Ravi Singh, Vice President & Head of Research, Share India said Gold MCX looks stronger day by day on charts.
“Fed officials quoted that if inflation keeps rising at its current pace in the next few months, the policymakers may need to adopt ‘a more aggressive policy response’ next year. Thus, traders should create fresh long positions in gold,” Singh said.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 and resistance at $1,833 per ounce. MCX Gold December support lies at Rs 47,600 and resistance at Rs 48,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.1 per cent to $1,817.65 per ounce by 0127 GMT, having hit its highest since Sept. 7 earlier in the session. US gold futures rose 0.3 per cent to $1,822.30.
Spot silver rose 0.3 per cent to $24.25 per ounce. Platinum gained 0.2 per cent to $1,036.02 and palladium climbed 0.5 per cent to $2,045.33.
—
The Economic Times
