Gold Price Today: Gold Price Today: Yellow Metal at 5 Month High; Silver is approaching Rs 67,000

NEW DELHI: Gold prices held steady at their 5-month highs on Tuesday after a sharp move higher in the previous session. Concerns about rising inflation risks kept precious metals attractive as a safe haven amid a stronger US dollar and higher bond yields.

Gold futures on MCX rose 0.12 percent or Rs 23 to Rs 49,359 per 10 grams. However, silver futures rose 0.51 percent or Rs 340 to Rs 66,903 per kg.

Interest rate hikes tend to weigh on gold as higher interest rates increase the opportunity cost of the non-yielding metal. A stronger dollar makes gold more expensive for buyers holding other currencies, while higher returns increase the opportunity cost.

Ravindra Rao, CMT, EPAT, VP-Head of Commodity Research at Kotak Securities, said: Gold continues to trade near June highs, but momentum has stalled amid mixed factors. Rising demand for gold is propping up prices amid rising inflation and troubled stocks.

“Higher US dollar and bond yields amid expectations that the Fed could act soon to keep inflation under control weighed on sentiment. Gold could remain in a range given mixed factors. But investors can buy dips when central banks consider tightening monetary policy, ”he added.

On the spot market, gold with the highest purity was sold for 49,351 rupees per 10 grams, while silver was sold for 66,967 rupees per kg on Monday, according to the Indian Bullion and Jewelers Association.

The spot price of gold has increased by more than 1,650 rupees per 10 grams in the 10 days, while silver has gained 3,400 rupees per kg over the reporting period.

Ravi Singh, Vice President & Head of Research, Share India said gold futures traded marginally higher, indicating rising demand for gold around the world.

“The soaring yields on US Treasuries amid rising inflation are continuously putting pressure on the gold price and limiting its upward trend. “The outlook for gold is positive and investors are advised to be long on any correction in gold futures,” he added.

Trading strategy
“We expect gold to rise sideways for the day, with gold support on the COMEX spot at $ 1,850 and resistance at $ 1,890 an ounce. MCX Gold’s support for December is at 49,000 rupees and resistance at Rs.49,700 per 10 grams, ”said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global Markets
Spot gold was unchanged at $ 1,862.81 per ounce at 0140 GMT. The US gold futures were also unchanged at $ 1,866.80.

Spot silver remained stable at $ 25.04 an ounce. Platinum fell 0.1 percent to $ 1,085.54 and palladium fell 0.6 percent to $ 2,142.19.