Gold price

Gold rate today: Yellow metal drops sharply; silver nears Rs 61,000

Sep 23, 2022

Synopsis

Gold futures on MCX were trading lower, declining 0.21 per cent or Rs 105 to Rs 50,900 per 10 grams. However, silver futures plunged 0.50 per cent or Rs 301 to Rs 61,101 per kg.

ThinkStock Photos Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver prices were lower, pressured by a rally in the US dollar index and the US Treasury yields that remain elevated.

NEW DELHI: Gold prices were trading lower on Friday ahead of the much-awaited US inflation numbers due later in the day, which could guide the future direction of Federal Reserve's monetary policy.

The US treasury yields rose and the dollar was on the front foot, hurting demand for zero-yield gold. US consumer price index data expected later in the day has market participants anxiously waiting for confirmation that inflation peaked in March.

Gold futures on

were trading lower, declining 0.21 per cent or Rs 105 to Rs 50,900 per 10 grams. However, silver futures plunged 0.50 per cent or Rs 301 to Rs 61,101 per kg.

Bullion is often seen as an inflation hedge, but the opportunity cost of holding is higher when the Fed raises short-term interest rates to combat inflation.

Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver prices were lower, pressured by a rally in the US dollar index and the US Treasury yields that remain elevated.

"The dollar index showed strength after the ECB press conference and crossed 103.1 mark again," he added. "We expect gold and silver to remain volatile in today’s session ahead of the US inflation data."

In the spot market, the highest purity gold was sold at Rs 51,029 per 10 grams while silver was priced at Rs 61,806 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have remained flat in the last one week period, whereas silver has eased close to Rs 1,000 per kg in the same last four sessions.

Pritam Patnaik, Head - Commodities, Axis Securities said the US inflation data, due today, is expected to set the tone for the US Fed’s next policy decision.

"While a 50 basis point is very much in the cards, the forward looking commentary for future action could be greatly influenced by today’s data," he added.

Trading Strategy "We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,830 and resistance at $1,860 per ounce. MCX Gold support lies at Rs 50,800 and resistance at Rs 51,300 per 10 gram," said Tapan Patel, Senior Analyst (Commodities),

Securities.

Global markets Spot gold eased 0.2 per cent to $1,844.78 per ounce while US gold futures eased 0.3 per cent to $1,848.10. Gold prices have fallen about 0.3 per cent this week.

Spot silver dipped 0.1 per cent to $21.63 per ounce, and platinum fell 0.6 per cent to $966.13, while palladium rose 0.7 per cent to $1,938.01. All are on course for weekly declines.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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