Wednesday, August 10, 2022
Home > Commodity > Gold rate today: Yellow metal trades flat; Silver drops marginally

Gold rate today: Yellow metal trades flat; Silver drops marginally

NEW DELHI: Gold prices were trading flat on Wednesday, bucking the global trend, as hawkish commentary from the US Federal Reserve along with a firm US dollar and rise in treasure yields dampened the sentiments.

A stronger dollar makes gold less attractive for other currency holders.

Gold futures on MCX were flat, merely 0.01 per cent or Rs 5 down at Rs 51,366 per 10 grams. Silver futures were trading lower by 0.13 per cent or Rs 89 at Rs 66,109 per kg.

US dollar index and bond yields have edged up ahead of FOMC minutes due later today which is expected to support market expectations of faster rate hikes, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

“ETF outflows also show profit taking by investors amid stable equities. Safe haven buying, concerns about the Chinese economy and inflation concerns have, however, kept prices supported,” he added.

Physical gold demand in India improved last week as domestic prices dropped ahead of a festival over the weekend, while purchases in top consumer China were limited by Covid-19 lockdowns.

In the spot market, the highest purity gold was sold at Rs 51,451 per 10 grams while silver was priced at Rs 66,468 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped as much as Rs 1,750 per 10 grams in the last four weeks, whereas silver has plunged about Rs 4,500 per kg during the period under review.

Pritam Patnaik Head – Commodities, Axis Securities said rising bond yields and a stronger dollar put pressure on gold prices.

Trading strategy

Gold may trade in a range-bound this week as Ukraine Russia peace talks are pointing towards progress, said Ravi Singh, Vice President and Head of Research, ShareIndia.

He has advised buying gold above Rs 51,500 for the target of Rs 51,700, whereas traders can short the yellow metal below Rs 51,200 for the target of 50,800

Global markets

Spot gold was down 0.2 per cent at $1,920.87 per ounce, as of 0114 GMT. US gold futures fell 0.3 per cent to $1,920.90.

Spot silver edged 0.1 per cent lower to $24.28 per ounce, platinum shed 0.3 per cent to $964.90 and palladium was flat at $2,237.05.

Source link

Leave a Reply

Your email address will not be published.

%d bloggers like this: