A “hotter than expected” September inflation report doesn’t necessarily mean the U.S. central bank needs to raise rates higher than officials predicted at their last policy meeting.
Gold futures on
were trading with solid gains, rising by 0.31% or Rs 156 to Rs 50,416 per 10 grams. Similarly, silver futures were trading up 0.79% or 438 rupees to 55,664 rupees per kg.
Gold is seen as a hedge against inflation and economic uncertainty, but rising interest rates reduce the attractiveness of the asset, which earns no interest.
“High multi-year bond yields have hit gold prices this year, to the benefit of the dollar, as the opportunity cost of holding the non-performing asset hurt its appeal,” said Deveya Gaglani. , research analyst at Axis Securities. “The dollar index flipped gold and seized the stock as a safe-haven asset, challenging its historic trend.”
Buying of physical gold improved in India last week as prices fell ahead of the Dhanteras and Diwali festivals later this week, while Chinese premiums remained high amid strong demand.
In the spot market, the highest purity gold was sold at Rs 50,438 per 10 grams while silver was priced at Rs 56,042 per kg on Friday, according to the Indian Bullion and Jewelers Association.
Spot gold prices fell nearly 1,300 rupees per 10 grams last week, while silver plunged nearly 4,800 rupees per kg over the same period under review.
“Gold saw some wild moves last week after the US CPI print beat expectations, supporting the Fed’s case for aggressive rate hikes,” Ravindra Rao, CMT, EPAT said. , Vice President of Commodities Research, Kotak Securities. “The deteriorating outlook for global growth could spur safe-haven buying to lower levels.”
Commercial strategy
Gold has support at $1640-1628, while resistance is at $1662-1674 and Silver has support at $18.10-17.80, while resistance is at 18 $.72-18.95, said Rahul Kalantri, vice president of commodities, Mehta Equities.
“In terms of rupees, Gold has support at Rs 50,020-49,780, while resistance is at Rs 50,410, 51,580. Silver has support at Rs 54,750-54,240, while resistance is at Rs 55,880-56,450,” he added.
Global Markets
Spot gold was up 0.5% at $1,650.49 an ounce, at 0149 GMT. Prices fell more than 1% on Friday and marked their biggest weekly decline since July. US gold futures rose 0.4% to $1,656.00.
Spot silver rose 1% to $18.44 an ounce, platinum rose 0.5% to $903.63 and palladium gained 1.9% to $2,025.80.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
