The slowdown in euro zone business activity deepened in September, a survey showed that the economy was likely entering recession as consumers rein in spending amid the cost of living crisis. .
Gold futures on
were trading flat, slightly up by 0.06% or Rs 29 to Rs 49,430 per 10 grams. However, silver futures fell by 1.07% or Rs 601 to Rs 55,632 per kg.
Gold is seen as a hedge against inflation while rising interest rates increase the opportunity cost of holding the non-earning asset and strengthen the dollar, in which bullion is valued.
Pritam Patnaik, Head – Commodities, Axis Securities said gold prices broke above the key physiological level of $1650 and continued to trade below, largely due to a rising dollar index, compared to the hawkish outlook painted by the US Fed.
“The fact that central banks around the world are willing to sacrifice growth to control inflation has clearly paved the way for a higher interest rate regime, which does not bode well for a price of l ‘interest-free gold,’ he added.
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to a rise. domestic rates.
In the spot market, the highest purity gold was sold at Rs 49,432 per 10 grams while silver was priced at Rs 56,100 per kg on Friday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have plunged nearly 1,500 rupees per 10 grams over the past two weeks, while silver has jumped around 1,400 rupees per kg over the same period under review.
Despite growing signs of deterioration in the global economy that add fears of recession, gold tumbled on the relentless gains in the US dollar, said Ravi Singh, vice president and head of research at ShareIndia.
In an effort to control inflation, central banks around the world are raising interest rates, he adds. “Gold could face further volatility this week due to public speeches by Fed officials.”
Commercial strategy
The LME Gold spot continues a downtrend. Resistance for the same is seen at $1,680, while support is seen at around $1,600. For MCX Gold Oct Future, position supports are seen at Rs 48,500 and Rs 47,300, said Vinay Rajani, Senior Research Analyst,
Securities.
Global Markets
Spot gold was down 0.3% at $1,638.59 an ounce, as of 0053 GMT, after hitting its lowest level since April 2020 earlier in the session. US gold futures fell 0.6% to $1,645.8.
Spot silver fell 0.8% to $18.68 an ounce, platinum rose 0.7% to $860.13 and palladium gained 0.4% to $2,076.10. .
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The slowdown in euro zone business activity deepened in September, a survey showed that the economy was likely entering recession as consumers rein in spending amid the cost of living crisis. .
Gold futures on
were trading flat, slightly up by 0.06% or Rs 29 to Rs 49,430 per 10 grams. However, silver futures fell by 1.07% or Rs 601 to Rs 55,632 per kg.
Gold is seen as a hedge against inflation while rising interest rates increase the opportunity cost of holding the non-earning asset and strengthen the dollar, in which bullion is valued.
Pritam Patnaik, Head – Commodities, Axis Securities said gold prices broke above the key physiological level of $1650 and continued to trade below, largely due to a rising dollar index, compared to the hawkish outlook painted by the US Fed.
“The fact that central banks around the world are willing to sacrifice growth to control inflation has clearly paved the way for a higher interest rate regime, which does not bode well for a price of l ‘interest-free gold,’ he added.
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to a rise. domestic rates.
In the spot market, the highest purity gold was sold at Rs 49,432 per 10 grams while silver was priced at Rs 56,100 per kg on Friday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have plunged nearly 1,500 rupees per 10 grams over the past two weeks, while silver has jumped around 1,400 rupees per kg over the same period under review.
Despite growing signs of deterioration in the global economy that add fears of recession, gold tumbled on the relentless gains in the US dollar, said Ravi Singh, vice president and head of research at ShareIndia.
In an effort to control inflation, central banks around the world are raising interest rates, he adds. “Gold could face further volatility this week due to public speeches by Fed officials.”
Commercial strategy
The LME Gold spot continues a downtrend. Resistance for the same is seen at $1,680, while support is seen at around $1,600. For MCX Gold Oct Future, position supports are seen at Rs 48,500 and Rs 47,300, said Vinay Rajani, Senior Research Analyst,
Securities.
Global Markets
Spot gold was down 0.3% at $1,638.59 an ounce, as of 0053 GMT, after hitting its lowest level since April 2020 earlier in the session. US gold futures fell 0.6% to $1,645.8.
Spot silver fell 0.8% to $18.68 an ounce, platinum rose 0.7% to $860.13 and palladium gained 0.4% to $2,076.10. .
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)