Gold rate today: Yellow metal little changed; silver dips marginally

Gold rate today: Yellow metal little changed; silver dips marginally

NEW DELHI: Gold prices inched lower, almost flat, on Thursday, following global trends as investors turned cautious ahead of US Federal Reserve Chair Jerome Powell’s speech this week, which could provide cues over economic stimulus.

Gold futures on MCX were up merely 0.04 per cent, or Rs 17, at Rs 47,196 per 10 gram. Silver futures declined 0.16 per cent, or Rs 105, at Rs 63,851 per kg.

The yellow metal traded little changed ahead of Jackson Hole Symposium where markets will try to get cues on asset tapering and interest rates change. The dollar index traded firms which also added pressure on gold prices.

The dollar index inched higher, weighing on the greenback-denominated bullion. Lower interest rates decrease the opportunity cost of holding non-yielding gold.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold trades little changed as gains in US dollar is countered by choppiness in equities.

“Support from virus risks, global growth worries and geopolitical tensions are countered by weaker investor interest. Gold may remain sideways ahead of Fed Chairman’s comments. However, global uncertainty may keep prices supported,” he added.

Gold jewellery varies in price across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

In the spot market, highest purity gold was sold at Rs 47,448 per 10 gram while silver was priced at Rs 63,382 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

The price of the yellow metal in spot market rose more than Rs 1,100 per 10 gram in the last two weeks, whereas silver has remained flat, gaining just Rs 500 per kg during the period.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,770 and resistance at $1,810 per ounce. MCX Gold October support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold fell 0.1% to $1,788.17 per ounce by 0316 GMT. Prices fell 0.7% in the previous session, its biggest one-day decline in more than two weeks. US gold futures were little changed at $1,789.80.

Silver was little changed $23.85 per ounce, while platinum fell 1% to $986.35. Palladium slipped 1.5% to $2,393.22.

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