Gold prices in India today hit record high
2 min read . Updated: 13 Jan 2023, 02:48 PM IST
PremiumThe price rise dampened demand in the world's second biggest consumer of the precious metal, dealers said.
Indian gold futures hit a record high on Friday, tracking gains in overseas market, but the price rise dampened demand in the world's second biggest consumer of the precious metal, dealers said. Local gold futures rose to ₹56,245 rupees ($691.45) per 10 grams, surpassing the previous record of ₹56,191 hit in August 2020.
Gold rates have rallied since November, supported by a weaker dollar and expectations of slower interest rate hikes by the U.S. Federal Reserve. Data released on Thursday showed that U.S consumer prices fell for the first time in more than two years in December, offering hope that inflation will soften going forward.
The Fed had raised rates by 75 basis points (bps) four times last year, before slowing to a 50 bps increase in December.
“The major supportive factor for gold’s rise was the US CPI print that came in as per the expectation. As per the report, US CPI rose 6.5% in December as compared to 7.1% in Nov (Y-o-Y). The print was the lowest since Oct 2021. Slowing inflation means less aggressive interest rate hikes by Fed. A per the CME Fed watch tool the probability of a 25-bps hike in Feb FOMC meeting has gone up to 92.7%. This has supported gold prices to trade above the resistance of $1884/oz which is the 8-month high,"said Ravindra V. Rao, Head Commodity Research, Kotak Securities Ltd.
“The bulls might now target the next resistance near $1920/oz. Support now is pegged near $1870/oz. Break of $1870/oz on closing might indicate a false breakout," he added.
In spot market, spot gold was steady at $1,895.82 per ounce, on track for fourth week of gains.
“Gold prices are set for a fourth straight week of gains after the U.S. inflation report came in line with market expectations, but still considered to be on the higher side. But whether or not the metal can maintain the upward momentum depends on the rate hike decision by the Federal Reserve in its February meeting," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Spot silver edged 0.4% lower to $23.69. “Silver has support at $23.52-23.35, while resistance is at $23.95-24.15. In rupee terms gold has support at ₹55,540-55,380, while resistance is at ₹56,120, 56,350. Silver has support at Rs68,050-67,520, while resistance is at Rs69,320–69,680," added Rahul Kalantri.
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