NEW DELHI: Gold prices rose on Monday as the growing worries over broadening price pressures lifted the metal’s appeal as an inflation hedge and helped cushion pressure from higher US Treasury yields after a surprisingly upbeat jobs report.

Gold futures on MCX edged higher by 0.15 per cent or Rs 73 to Rs 47,997 per 10 grams. Silver futures were trading higher by 1.12 per cent or Rs 683 at Rs 61,532 per kg.

Gold is considered a hedge against inflation and geopolitical risks, yet rate hikes would raise the opportunity cost of holding non-yielding bullion.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said that gold trades higher supported by weaker US dollar, mixed economic numbers, inflation concerns and geopolitical risks.

“However, weighing on price is higher bond yields amid the hawkish stance of major central banks. Gold may remain in a range amid mixed factors, however, tightening expectations may keep pressure on prices,” he added.

In the spot market, the highest purity gold was sold at Rs 48,273 per 10 grams while silver was priced at Rs 60,927 per kg on Friday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold are back above Rs 48,000 mark after almost a week, whereas silver inched up but could not settle above 61,000 in the spot market.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 and resistance at $1,830 per ounce. MCX Gold April support lies at Rs 47,700 and resistance at R. 48,200 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold rose 0.2 per cent to $1,810.38 per ounce by 0129 GMT, hovering close to its highest nearly a week reached last Friday, while US gold futures edged up 0.2 per cent to $1,812.10

Silver rose 0.9 per cent to $22.67 per ounce, platinum edged 0.1 per cent up to $1,025.47 and palladium was up 0.7 per cent to $2,299.68.