Gold rate today: Yellow metal moves higher, silver tops Rs 65,000
22 Oct 2021
NEW DELHI: Gold inched higher and was poised for a second weekly gain on Friday. Softer dollar provided some respite against higher US bond yields.
A weaker dollar and rising expectations that central banks could begin easing economic support strengthened the bullion. A steep rally in bond yields limited the upside.
Gold futures on MCX were trading higher 0.36 per cent, or Rs 170, at Rs 47,574 per 10 gram. Silver futures were up 0.44 per cent, or Rs 289, at Rs 65,302 per kg.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion which pays no interest.
Ravi Singh, Vice President & Head of Research, Share India, said, “Traders are closely monitoring the remarks from Fed officials for clarity on the timeline of bond tapering. We expect higher volatility in gold due to increased demand during the festive season.”
According to data from the commerce ministry, gold imports increased to about $24 billion during April-September 2021 from $6.8 billion in the previous year, ahead of the busy festive season.
In the spot market, highest purity gold was sold at Rs 47,469 per 10 gram while silver was priced at Rs 65,000 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained almost Rs 650 per 10 gram in the last two weeks, whereas silver has jumped about Rs 4,500 per kg during the period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,770 per ounce and resistance at $1,800 per ounce. MCX Gold December support lies at Rs 47,100 and resistance at Rs 47,600 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.1% to $1,785.00 per ounce by 0216 GMT. U.S. gold futures edged 0.2% higher to $1,786.00.
Spot silver rose 0.2% to $24.18 an ounce and was on track for a fifth consecutive weekly gain. Platinum was up 0.5% at $1,053.80 per ounce and palladium gained 1% to $2,037.56.