Investors are waiting for nonfarm payrolls data from the US Department of Labor, due later today, for clues on how the rate hikes have affected the labor market.
Gold prices are expected to trade with a positive bias for the day amid US dollar weakness, ICICIDirect Research said. “Investors will be watching key U.S. economic data such as nonfarm payrolls and the unemployment rate closely,” he added.
Gold futures on
were trading lower, down 0.13% or Rs 68 to Rs 53,825 per 10 grams. However, silver futures were trading at 65,415 rupees per kg.
Gold is seen as a hedge against inflation, which rising rates aim to tackle, thus diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared to non-interest bearing bullion.
Ravindra V. Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities, said gold edged closer to four-month highs near $1,820 amid dollar weakness and falling bond yields. of the US Treasury.
“The disappointing economic data from the United States reinforces the expectation that the pace of rate hikes will slow down,” he said. “The forecast is for a slight moderation in the number of jobs, which could be positive for bullion,” he added.
In the spot market, the highest purity gold was sold at Rs 53,181 per 10 grams while silver was priced at Rs 63,203 per kg on Thursday, according to the Indian Bullion and Jewelers Association.
Spot gold prices topped Rs 53,000 per 10 grams after 10 sessions, while silver gained around Rs 2,000 per kg over the same period under review.
Rahul Kalantri, vice president of commodities, Mehta Equities, said gold and silver prices were up sharply on Thursday, with gold hitting a three-and-a-half-month high and silver a high. six months.
“A falling US dollar index, higher crude oil prices and falling US Treasury yields are all driving precious metals markets,” he said. “A dovish signal from the US central bank is also fueling bulls in the metals market,” he added.
Commercial strategy
“The Bullion charts are now showing some profit booking and look overbought. The RSI momentum indicator is also indicating the same,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodity. He advised traders to take further short positions.
He suggested selling gold and silver near given resistance levels at Rs 54,000-54,200 and Rs 65,700-66,700, respectively. He also advised to book profits near support levels at Rs 53,700-53,400 and Rs 64,500 and Rs 63,700, respectively.
Global Markets
Spot gold fell 0.3% to $1,796.71 an ounce at 0247 GMT after hitting its highest level since August 10 at $1,804.46 earlier in the session. US gold futures fell 0.2% to $1,810.70.
Gold prices are up around 2.4% so far in the week, which would be their second consecutive weekly gain. Spot silver slid 0.7% to $22.61, platinum was flat at $1,041.38 and palladium lost 1% to $1,922.13.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
