The European Central Bank is set to raise interest rates for the first time in 11 years on Thursday, with a larger-than-expected move seen as increasingly likely as policymakers fear losing control of runaway price growth at the consumption.
Gold futures on
were trading down around 0.49% or Rs 248 to Rs 49,977 per 10 grams. Silver futures fell 0.89% or 496 rupees to 55,123 rupees per kg.
Although gold is considered a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion, which pays no interest. Market players are also closely watching the resumption of gas flow along the largest gas pipeline linking Russia to Germany.
Pritam Patnaik, head of commodities, Axis Securities, said gold prices came under renewed attack as the dollar index tried to retest its recent highs. “Prices will remain low to negative as all rallies will eventually be sold.”
Investors appear worried about the deluge of impending rate hikes in all major economies, he added.
In the spot market, the highest purity gold was sold at Rs 50,553 per 10 grams while silver was priced at Rs 55,367 per kg on Tuesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have fallen by more than 1,750 rupees per 10 grams in the past two weeks, while silver has plunged around 2,800 rupees per kg in a single session.
Commercial strategy
“We expect gold prices to trade sideways for the day with COMEX Spot Gold support at $1,685 per ounce and resistance at $1,710 per ounce. August stands at Rs 49,800 and resistance at Rs 50,500 per 10 grams,” Tapan Patel said. , Senior Analyst (Commodities),
securities.
Global Markets
Spot gold fell 0.3% to $1,691.84 an ounce after falling to its lowest level since early August 2021 at $1,689.40 earlier in the session. U.S. gold futures fell 0.6% to $1,690.40 an ounce.
Elsewhere, spot silver fell 0.6% to $18.54 an ounce, platinum fell 0.5% to $854.03 and palladium rose 0.3% to 1,867 .20 dollars.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The European Central Bank is set to raise interest rates for the first time in 11 years on Thursday, with a larger-than-expected move seen as increasingly likely as policymakers fear losing control of runaway price growth at the consumption.
Gold futures on
were trading down around 0.49% or Rs 248 to Rs 49,977 per 10 grams. Silver futures fell 0.89% or 496 rupees to 55,123 rupees per kg.
Although gold is considered a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion, which pays no interest. Market players are also closely watching the resumption of gas flow along the largest gas pipeline linking Russia to Germany.
Pritam Patnaik, head of commodities, Axis Securities, said gold prices came under renewed attack as the dollar index tried to retest its recent highs. “Prices will remain low to negative as all rallies will eventually be sold.”
Investors appear worried about the deluge of impending rate hikes in all major economies, he added.
In the spot market, the highest purity gold was sold at Rs 50,553 per 10 grams while silver was priced at Rs 55,367 per kg on Tuesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have fallen by more than 1,750 rupees per 10 grams in the past two weeks, while silver has plunged around 2,800 rupees per kg in a single session.
Commercial strategy
“We expect gold prices to trade sideways for the day with COMEX Spot Gold support at $1,685 per ounce and resistance at $1,710 per ounce. August stands at Rs 49,800 and resistance at Rs 50,500 per 10 grams,” Tapan Patel said. , Senior Analyst (Commodities),
securities.
Global Markets
Spot gold fell 0.3% to $1,691.84 an ounce after falling to its lowest level since early August 2021 at $1,689.40 earlier in the session. U.S. gold futures fell 0.6% to $1,690.40 an ounce.
Elsewhere, spot silver fell 0.6% to $18.54 an ounce, platinum fell 0.5% to $854.03 and palladium rose 0.3% to 1,867 .20 dollars.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)