Gold price today: Yellow metal climbs to Rs 47,250; silver costlier by Rs 700

Gold price today: Yellow metal climbs to Rs 47,250; silver costlier by Rs 700

NEW DELHI: Gold and silver futures were trading with gains on Thursday bolstered by the US Federal Reserve’s pledge to maintain easy monetary policy to aid economic recovery, while a weaker dollar provided further support.

The dollar index edged 0.1 per cent lower against its rivals, boosting gold’s appeal for other currency holders. The Federal Reserve held interest rates and its bond-buying program steady on Wednesday after its two-day policy meet despite taking a rosier view of the US economic recovery.

Gold futures on MCX were up 0.34 per cent or Rs 160 at Rs 47,253 per 10 grams. Silver futures rose 1.01 per cent or Rs 696 to Rs 69,739 per kg.

“Gold has edged up as the US dollar index slumped to 1-month low on back of Fed’s decision to maintain its accommodative stance despite improving outlook for the US economy. Also supporting gold is hopes of additional stimulus measures by the Biden administration. However, weighing on price is weaker investor buying and concerns about Indian demand,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.

“Gold may remain choppy reflecting the trend in the US dollar as market players counter Fed’s dovish stance against improving economic outlook.”

In the spot market, highest purity gold was sold at Rs 46,859 while silver was priced at Rs 67,700 on Wednesday, according to the Indian Bullion and Jewellers Association.

Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,770 and resistance at $1,800 per ounce. MCX gold June support lies at Rs 46,800 and resistance at Rs 47,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold was up 0.2 per cent at $1,784.94 per ounce by 0101 GMT, having dipped to $1,762 in the previous session, its lowest since April 16. US gold futures rose 0.6 per cent to $1,784.50 per ounce.

Autocatalyst metal palladium edged up 0.3 per cent to $2,936.10 per ounce, having scaled an all-time peak of $2,962.50 on Tuesday. Silver gained 0.6 per cent to $26.34 per ounce. Platinum was up 0.3 per cent at $1,222.93.

About Author

Related posts