Gold Rate Today: Gold feels the squeeze from rising dollar, goes flat
ETMarkets.com|
Updated: Feb 28, 2018, 11.56 AM IST
Gold prices saw no noticeable movement, but traded with a positive bias early on Wednesday as the yellow metal felt the pinch of a surging dollar.
Subdued demand from jewellers, investors and retailers was a drag. The US currency stood near a three-week high against a basket of currencies.
MCX Gold futures were trading 0.05 per cent up at Rs 30,310 per 10 grams at around 10.40 am (IST). MCX Silver futures were down 0.17 per cent at Rs 38,108 per kg.
“We expect gold prices to trade lower on Wednesday as hawkish comments by the Fed head will be supportive for the dollar,” said Angel Broking in a report.
The US Fed is expected to approve its first rate increase of 2018 at its next policy meeting in March when it will also provide fresh economic projections.
SMC Investments and Advisors believes that gold may trade with a downside bias in a range of Rs 30,150-30,350 while silver may trade with a bearish bias in Rs 37,900-38,300 in the near term.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21 per cent to 831.03 tonnes on Monday, from 829.26 tonnes on Friday.
Meanwhile, domestic equity markets turned cautious on Wednesday as investors await key macroeconomic data due later in the day amid a weak trend in other Asian markets.
Subdued demand from jewellers, investors and retailers was a drag. The US currency stood near a three-week high against a basket of currencies.
MCX Gold futures were trading 0.05 per cent up at Rs 30,310 per 10 grams at around 10.40 am (IST). MCX Silver futures were down 0.17 per cent at Rs 38,108 per kg.
“We expect gold prices to trade lower on Wednesday as hawkish comments by the Fed head will be supportive for the dollar,” said Angel Broking in a report.
The US Fed is expected to approve its first rate increase of 2018 at its next policy meeting in March when it will also provide fresh economic projections.
SMC Investments and Advisors believes that gold may trade with a downside bias in a range of Rs 30,150-30,350 while silver may trade with a bearish bias in Rs 37,900-38,300 in the near term.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.21 per cent to 831.03 tonnes on Monday, from 829.26 tonnes on Friday.
Meanwhile, domestic equity markets turned cautious on Wednesday as investors await key macroeconomic data due later in the day amid a weak trend in other Asian markets.
