NEW DELHI: Gold prices edged up marginally on Tuesday. The dollar held firm, which hovered near a year’s high, on expectations that the Federal Reserve will announce a tapering of its bond purchases next month.
Gold futures on MCX were trading higher by 0.16 per cent or Rs 75 at Rs 47,126 per 10 gram. On the other hand, silver futures were almost flat, marginally up, by 0.02 per cent or Rs 14 at Rs 61,758 per kg.
Gold is seen as a hedge against inflation and currency debasement likely from the widespread stimulus. The Fed’s tapering could tackle both those conditions, diminishing bullion’s appeal.
Vidit Garg, Director, MyGoldKart, said the rallying dollar weighed on gold prices, which edged lower. The US Federal Reserve would not put off stimulus tapering, although stagflation expectations limited losses in inflation-hedge bullion, he said.
Physical gold rates in India flipped to a discount for the first time in over two months last week as a rise in local prices curbed demand.
In the spot market, highest purity gold was sold at Rs 47,102 per 10 gram while silver was priced at Rs 61490 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained about Rs 1,150 per 10 gram in the last couple of weeks, whereas silver too has risen more than Rs 1,850 per kg during the period under review.
Ravi Singh, Vice President & Head of Research ShareIndia, said, “Gold may remain in a narrow range between Rs 46,850 – 47,200 with a bias towards buying side.”
Buy Zone: Above Rs 47,100 for a target of Rs 47,350
Sell Zone: Below Rs 46,850 for a target of Rs 46,550
Spot gold was unchanged at $1,753.77 per ounce by 0123 GMT, while US gold futures were little changed at $1,754.90.
Spot silver fell 0.2% to $22.52 per ounce, while platinum dropped 0.5% to $1,003.87. Palladium was down 0.4% to $2,103.16, having hit its highest since Sept 10 at $2,182.67 on Monday.