Gold prices today remain weak for third day after coming closer to all-time high
2 min read . Updated: 12 Jan 2023, 05:00 PM IST
Premium- Apart from a drop in US bond yields, gold has also been supported by a pullback in US dollar.
Gold prices in India remained weak for third day in row after edging closer to all-time highs last week. On MCX, gold futures were flat at ₹55,807 per 10 gram while silver rose 0.8% to ₹68,528 per kg. Last week, gold prices in India had risen to ₹56,175 per 10 gram. In global markets, spot gold was up 0.4% at $1,884.61 per ounce, after hitting its 8-month high of $1,886 on Wednesday. Among other precious metals, silver gained 1.3% to $23.73 per ounce.
“Since Nov last year gold has seen an uptick as Fed indicated they might slow down the pace of interest rate hikes. For the day focus will be on US CPI data. Annualized CPI is expected at 6.5% down from 7.1% in November. Month-on-month CPI is expected at 0.0% vs 0.1% in November. Further drop in inflation will be positive for gold prices as it will get a double boost after the NFP print last week showed cooling of the labor market," said Ravindra V.Rao, VP-Head Commodity Research, Kotak Securities Ltd.
“On the price action front COMEX gold traded above the resistance $1884/oz. However, the bulls need to keep the price above $1884/oz on a few closings to take it further higher towards $1920/oz. Till that happens the price might consolidate between $1884/oz to $1858/oz," he added.
Apart from a drop in US bond yields, gold has also been supported by a pullback in US dollar. The dollar languished near seven-month low against its rivals, making gold more attractive for other currency holders.
Traders will now look forward to US consumer price index data due later today.
Gold has been trading in a range of $1800–1880 in the last one month and the cues from the US Fed on likely slowdown in rate tightening has helped gold prices rally from levels of $1680-1730 to $1850-1880 currently.
“In India, the prices are trading near an all-time high aided by the marriage season demand. Globally, it is trading 5-6% lower than the all-time high level recorded in September 2022," said Emkay Wealth Management.
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Gold is an international commodity, priced in US Dollars – so a softness in the greenback lifts the prices of the yellow metal. (With Agency Inputs)
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