Gold prices today rise after sharp fall, silver rates jump
Premium- Gold rates had fallen sharply on Friday following better-than-expected US jobs data
Gold prices inched higher in Indian markets while silver rates surged, tracking a similar move in global rates. On MCX, gold futures were up 0.3% to ₹51,120 per 10 gram while silver futures jumped 1.3% to ₹62,451 per kg. In global markets, gold rates were steady at $1,850.60 per ounce while silver inched higher closer to $22 mark.
“Recovery upticks in gold can be seen as long as the support of $1848 remains undisturbed. A direct drop below the same would trigger further weakness," domestic brokerage Geojit said in a note.
“While silver prices stays above the support of $21.50, upticks likely to continue the day. A direct drop below $20 would trigger major liquidation," it added.
Gold rates had fallen 1% on Friday after better-than-expected US jobs data which showed no signs of the world's biggest economy buckling under the pressure of high inflation and rising borrowing costs. Higher rates raise the opportunity cost of holding gold, which yields no interest.
Meanwhile, gold discounts widened in India last week as demand faltered due to a rise in prices and a winding up of wedding season.
“COMEX gold trades marginally higher near $1855/oz amid choppiness in US dollar as market players assess US non-farm payrolls data and start positioning for ECB’s decision on June 9. Also supporting gold price are inflation concerns as crude oil price jumped to 3-month high on tightness concerns. Safe haven demand rose also as US and South Korea fired eight missiles in response to North Korea’s missile tests," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“Gold has come off the highs but is still holding near $1850/oz level. However with US economic numbers and Fed comments suggesting that the central bank may continue with tightening, we may not see much gains."
Gold traders will be closely watching ECB rate decision on Thursday and US May consumer inflation print due on Friday.
“US May jobs data beat expectations. Strong labor data would give the Fed comfort and confidence as of now to tighten monetary policy aggressively to rein in inflation. The effect of Monetary policy changes is however felt with a lag. At each stage the Fed would carefully assess the impact that rate hikes and balance sheet normalization would have had on labor market and consumption," IFA Global said in a note.