Gold prices today near 2-month lows, silver rates edge higher.

Share:
Gold and silver prices edged higher in Indian markets, following a similar trend in global rates. On MCX, gold futures were up slightly but were near 2-month lows of 47,000 per 10 gram while silver rose 0.46% to 67,823. MCX gold has resistance at 47,800 and support at 46100, say analysts. Global gold rates have fluctuated over the past one week, buffeted by a hawkish shift in the Fed’s policy outlook though officials have pledged to continue with low interest rates to make progress toward employment and inflation goals.

In international markets, gold rates were steady today after US Fed chief said that central bank would be patient in waiting to lift borrowing costs. Spot gold was up 0.1% at $1,780.06 per ounce but a stronger US dollar capped gains. Jerome Powell, in Congressional testimony overnight, pledged not to raise interest rates too quickly based only on the ‘fear’ of coming inflation.

 

Benchmark 10-year Treasuries yields inched lower, giving a boost to the yellow metal. Gold prices typically rises on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

The dollar index however inched 0.1% higher to 91.850, making gold more expensive for holders of other currencies.

Among other precious metals, silver gained 0.2% at $25.80 per ounce while platinum climbed 0.1% to $1,080.63.

Gold has support at $1754 while major rallies are seen only a close above $1855, says Geojit, adding that a direct drop below $1754 would trigger further liquidation pressure in the yellow metal.

In testimony to the House Select Subcommittee on Tuesday, Fed chief said price increases recently were higher than expected but are likely to wane.

Gold traders will be watching US. new home sales and current account balance, both due later today. Also, on their radar will be Thursday’s Bank of England interest rate decision and Fed’s stress test results on the largest US banks. (With Agency Inputs)

Join WhatsApp Group Click Here
Join Telegram Group Click Here
Follow on Facebook Click Here
Follow on Instagram Click Here
Follow on Twitter Click Here
Subscribe on YouTube Click Here
Share:

Leave a Comment