Gold prices today jump to near one-month high, silver rates rise
Premium- Gold rates today were supported by a weaker US dollar and traders would be today looking ahead to US jobs data
Gold prices today edged higher to near one-month high as the US dollar retreated. On MCX, gold futures were up 0.2% to ₹51390 per 10 gram while silver futures rose 0.6% to ₹62695. In global markets, gold prices rallied to near one-month high, supported by a weaker US dollar. Spot gold was steady at $1,867.33 per ounce, extending this week's gain to 0.8% so far. A weaker US dollar makes greenback-priced bullion more attractive for overseas buyers. Among other precious metals, spot silver gained 0.2% to $22.33 per ounce, extending gains to about 1% so far this week.
“Mild recovery in gold can be seen as long as the support of $1848 remains undisturbed. A direct drop below the same would trigger further weakness," said domestic brokerage Geojit.
“While prices stays above the support of $21.50, upticks likely to continue the day in silver. A direct drop below $20 would trigger major liquidation."
Gold traders looked ahead to today's US jobs report. Investors remain on edge as some fear the pace of US monetary tightening could throw the world’s largest economy into a recession.
Signs of an economic crisis can be supportive for gold demand, as investors consider it a safe-haven asset. But higher short-term U.S. interest rates increase the opportunity cost of holding gold, which bears no interest.
Analysts say gold prices are being supported by global growth worries, inflation concerns and Russia-Ukraine fighting. But it is being countered dollar strength and higher US bond yields.
“Some upbeat US economic data and hawkish comments from Fed officials has rekindled market expectations that Fed may continue with monetary tightening despite growth risks. ETF outflows also showed weaker investor interest in gold. Gold may remain stuck in a range amid mixed factors. However, with US dollar on a firmer side, the general bias may be on the downside," said Ravindra Rao, Head Commodity Research at Kotak Securities.
In a note, Kotak Securities said: “Commodities have lost momentum amid volatility in US dollar and equity markets as growth outlook and monetary policy stance is assessed. We may see volatile trade continuing however Fed’s monetary tightening stance may keep US dollar supported thereby pressurizing commodities."