Aggressive monetary policies from top central banks and elevated US dollar kept traders away from the greenback-priced bullion. Gold prices are coming off their worst quarter since early 2021.
Gold futures on
were trading sharply higher, gaining 0.72 per cent or Rs 362 at Rs 50,879 per 10 grams. However, silver futures traded lower, down by 0.71 per cent or Rs 42 at Rs 58,467 per kg.
Gold is seen as an inflation hedge, higher short-term US interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest. A firm US dollar makes gold less attractive for buyers holding other currencies.
Gold prices eased, pressurised by a hawkish tone from global central banks, according to ICICI Direct. “However, risk aversion in the global markets and disappointing macroeconomic data from the US restricted further downsides in bullion prices,” it said.
In the spot market, the highest purity gold was sold at Rs 50,863 per 10 grams while silver was priced at Rs 58,803 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has again breached the Rs 51,000 mark, after remaining above it for about a week, whereas silver has plunged more than 2,000 per kg since Monday.
Gold may remain under pressure on Monday as US GDP shrinks in the first quarter with a record trade deficit, according to Ravi Singh, Vice President and Head of Research, ShareIndia
“This fuels the fear of recession strongly and gold prices shoot up, though momentarily as the Fed has again reiterated increasing another 0.75 per cent if required to tame inflation,” he said.
Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,800/$1,780 and resistance at $,1820 per ounce. MCX Gold August support lies at Rs 50,100 and resistance at Rs 50,800 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Securities.
Global markets
Spot gold was down 0.2 per cent at $1,804.26 per ounce after hitting an over six-week low of $1,801.50 in the previous session. US gold futures dipped 0.1 per cent to$1,805.00.
Gold prices, coming off their worst quarter since early 2021, have lost about 1.2 per cent this week. Spot silver eased 0.4 per cent to $20.16 per ounce, and has dropped about 4.5 per cent this week, its most since mid-May.
Platinum rose 0. 3 per cent to $896.30, yet faces a fourth consecutive weekly fall. Palladium dropped 0.4 per cent to $1,930.08, but has gained about 2.8 per cent this week.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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