AgenciesNEW DELHI: Gold prices edged higher on Friday, but the yellow metal was on track for its worst week since March 2020. The US Federal Reserve's hawkish message on monetary policy has bolstered dollar and bond yields. Demand for the yellow metal is dented in domestic markets, but showed some strength in early trade.
The dollar index hit a two-month high and was headed for its best week in nearly nine months, making gold more expensive for holders of other currencies. The benchmark 10-year yield held firm above 1.50 per cent, increasing the opportunity cost of holding non-interest bearing gold.
The demand for physical gold in the world's second largest bullion market has remained lacklustre since the second wave of pandemic hit India.
Gold futures on MCX were up 0.32 per cent, or Rs 151, at Rs 47,109 per 10 gram. Silver futures rose 1.04 per cent, or Rs 702 to Rs 68,301 per kg.
"The yellow metal halted decline on Friday after falling nearly 5 per cent on Thursday. The Fed has hinted at a hawkish stance by 2023 which boosted buying in dollar with outflow from safe haven assets," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 47,556 while silver was priced at Rs 69,520 on Thursday, according to the Indian Bullion and Jewellers Association.
Trading strategy
"We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold August futures support lies at Rs 46,700 and resistance at Rs 47,400 per 10 gram," added Patel from HDFC Securities.
Global markets
Spot gold was up 0.3 per cent at $1,779.11 per ounce, as of 0100 GMT. However, prices have fallen 5.2 per cent so far this week. US gold futures edged 0.2 per cent higher to $1,779 per ounce.
Silver rose 0.7 per cent to $26.12 per ounce, palladium gained 0.7 per cent to $2,513.88, while platinum climbed 1 per cent to $1,068.40.
The dollar index hit a two-month high and was headed for its best week in nearly nine months, making gold more expensive for holders of other currencies. The benchmark 10-year yield held firm above 1.50 per cent, increasing the opportunity cost of holding non-interest bearing gold.
The demand for physical gold in the world's second largest bullion market has remained lacklustre since the second wave of pandemic hit India.
Gold futures on MCX were up 0.32 per cent, or Rs 151, at Rs 47,109 per 10 gram. Silver futures rose 1.04 per cent, or Rs 702 to Rs 68,301 per kg.
"The yellow metal halted decline on Friday after falling nearly 5 per cent on Thursday. The Fed has hinted at a hawkish stance by 2023 which boosted buying in dollar with outflow from safe haven assets," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 47,556 while silver was priced at Rs 69,520 on Thursday, according to the Indian Bullion and Jewellers Association.
Trading strategy
"We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold August futures support lies at Rs 46,700 and resistance at Rs 47,400 per 10 gram," added Patel from HDFC Securities.
Global markets
Spot gold was up 0.3 per cent at $1,779.11 per ounce, as of 0100 GMT. However, prices have fallen 5.2 per cent so far this week. US gold futures edged 0.2 per cent higher to $1,779 per ounce.
Silver rose 0.7 per cent to $26.12 per ounce, palladium gained 0.7 per cent to $2,513.88, while platinum climbed 1 per cent to $1,068.40.
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