NEW DELHI: Gold prices rose on Friday as the weakness in the US dollar boosted the sentiments for the yellow metal. However, the gains were capped following hawkish comments by the US Fed chair.
The European Central Bank raised its key interest rates by an unprecedented 75 basis points on Thursday and promised further hikes to combat inflation even as the bloc is likely heading towards a winter recession and gas rationing.
Gold futures on
were trading firmer by 0.37 per cent or Rs 184 at Rs 50,540 per 10 grams. However, silver futures rallied 1.17 per cent or Rs 634 at Rs 54,915 per kg.
The dollar index was down 0.3 per cent, having hit its lowest level in a week, making the greenback-priced bullion less expensive for those holding other currencies.
The number of Americans filing new claims for unemployment benefits fell last week to a three-month low, underscoring the robustness of the labour market.
Tapan Patel, Senior Analyst (Commodities), Securities said gold prices traded higher on Friday with spot gold prices trading over half a per cent up in the morning trade.
“Gold prices recovered on the weaker dollar which was trading 0.65 per cent down at 109 against six major currencies. The market players digested hawkish remarks from US Fed,” he added.
In the spot market, the highest purity gold was sold at Rs 50,902 per 10 grams while silver was priced at Rs 54,320 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have plunged as much as Rs 1,200 per 10 grams in the last two weeks, whereas silver has dropped about Rs 1,600 per kg in the same period under review.
Trading Strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,710 and resistance at $1,730 per ounce. MCX Gold October support lies at Rs 50,100 and resistance at Rs 50,800 per 10 grams,” said Patel from HDFC Securities.
Global markets
Spot gold rose 0.4 per cent to $1,713.62 per ounce as of 0110 GMT. US gold futures were up 0.3 per cent at $1,724.90.
Spot silver gained 0.5 per cent to $18.66 per ounce, platinum rose 0.1 per cent to $880.27 and palladium fell 0.5 per cent to $2,127.57.
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