Market participants expect interest rates to rise 50 basis points at the Federal Reserve’s December meeting after minutes from the U.S. Central Bank’s latest policy meeting signaled a slowdown the pace of rate increases.
Gold futures on
were trading lower, losing 0.13% or Rs 67 to Rs 53,023 per 10 grams. Similarly, silver futures fell by 0.59% or Rs 362 to Rs 61,314 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.
Gold prices fell slightly amid a rebound in the US dollar index and higher yields on US 10-year Treasury bills, ICICIDirect said. “Gold prices are expected to trade with a negative bias,” he said.
The broker said a sharp drop could be tempered by expectations that the US Fed could slow the pace of interest rate hikes from December. “China has reported a new daily record for COVID-19 infections,” he added.
In the spot market, the highest purity gold was sold at Rs 52,660 per 10 grams while silver was priced at Rs 61,829 per kg on Friday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have remained above 52,000 rupees per 10 grams for more than two weeks now, while silver lingers near 62,000 rupees per kg.
Rahul Kalantri, vice president of commodities, Mehta Equities, said gold and silver prices rose last week after dovish remarks from US Fed officials in the meeting minutes of November.
“US Fed officials signaled slow interest rate hikes ahead, which pushed the dollar index and US bond yields lower and supported precious metal prices,” he said. -he declares.
Commercial strategy
“The bullion charts are looking positive. The RSI momentum indicator is also indicating the same,” said Amit Khare, AVP-Research Commodities, Ganganagar Commodity. He advised traders to take new positions in gold and silver.
He suggested buying gold and silver near the support levels given at Rs 52,400-52,200 and Rs 61,200-60,800, respectively. He also advised to book profits near resistance levels at Rs 52,650-53,850 and Rs 62,000 and Rs 62,000, respectively.
Global Markets
Spot gold was down 0.2% at $1,752.66 an ounce, at 0016 GMT. US gold futures fell 0.1% to $1,751.80.
Spot silver slid 1.3% to $21.31, platinum fell 0.4% to $976.28 and palladium fell 0.6% to $1,840.97.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
