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    Gold rate today: Yellow metal flat; silver edges lower

    Synopsis

    The spot price of the yellow metal has gained about Rs 300 per 10 gram in the last one week, whereas silver has gained more than Rs 1,550 during the period under review.

    Gold and silverAgencies
    Gold futures on MCX were marginally down 0.02 per cent, or Rs 8, at Rs 47,417 per 10 gram. Silver futures declined 0.13 per cent, or Rs 88, at Rs 65,204 per kg.
    NEW DELHI: Bucking global trends, gold was little changed on Tuesday in the domestic market. The yellow metal lacked directional cues as the US market was closed on Monday on account of a public holiday.

    However, a softer dollar and prospects of the US Federal Reserve delaying a tapering in its pandemic-era bond purchases made gold an attractive asset.

    Gold futures on MCX were marginally down 0.02 per cent, or Rs 8, at Rs 47,417 per 10 gram. Silver futures declined 0.13 per cent, or Rs 88, at Rs 65,204 per kg.

    Gold prices had hit a multi-week high last week following a disappointing US non-farm payrolls data. A strong jobs recovery is crucial for the central bank to start withdrawing its stimulus measures.

    The yellow metal kept rangebound trading on Monday. Mixed global cues post US non-farm payroll data has also kept gold prices in range. Gold prices may trade sideways for the day.

    Ravindra Rao, CMT, EPAT, VP - Head Commodity Research at Kotak Securities, said gold eased a bit amid a pause in the US dollar’s slide and as market players moved to sidelines ahead of central bank meetings this week. Investor interest also remains weak in gold as is evident from ETF outflows.

    "However, supporting price is geopolitical tensions, virus concerns and mixed economic data from major economies. Rise in Indian imports also show improved demand. Gold may remain choppy as market players assess central bank monetary policy. Increasing challenges to the global economy may continue to support prices," he added.

    Physical gold demand across top Asian hubs was largely muted last week, while dealers in India pinned hopes on the upcoming festival season.

    However, India's gold imports in August nearly doubled from a year earlier on strong demand and as weaker prices prompted jewellers to ramp up purchases for the coming season.

    In the spot market, highest purity gold was sold at Rs 47,534 per 10 gram while silver was priced at Rs 64,957 per kg on Monday, according to the Indian Bullion and Jewellers Association.

    The spot price of the yellow metal has gained about Rs 300 per 10 gram in the last one week, whereas silver has gained more than Rs 1,550 during the period under review.

    Gold has been a frustrating trade as the precious metal struggles to find bullish momentum despite currency weakening and real interest rates in negative territory, said Sandeep Matta, Founder, TRADEIT Investment Advisor.

    Trading strategy
    "COMEX Spot gold support lies at $1,810 and resistance at $1,833/1,850 per ounce. MCX Gold October support lies at Rs 47,100 and resistance at Rs 47,800 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

    Global markets
    Spot gold rose 0.2% to $1,826.75 per ounce by 0108 GMT. US gold futures eased 0.3% to $1,828.00.

    Silver firmed 0.4% to $24.76 per ounce, platinum rose 0.1% to $1,020.26 and palladium was flat at $2,410.52.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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