Yellow metal trades flat, silver drops marginally

Yellow metal trades flat, silver drops marginally

NEW DELHI: Gold prices traded flat on Friday, set for a gain on a weekly basis after more than a month. The US dollar receded from the two-decade high and mounting concerns over US economic growth revived safe-haven demand.

"We have seen a recovery in gold and silver prices from the oversold zone," said Anuj Gupta, Vice President - Commodity and Currency Research, IIFL Securities.Gold futures on MCX NSE 1.70 % were trading marginally higher by 0.09 per cent or Rs 44 up at Rs 50,588 per 10 grams. However, silver futures tumbled about 0.17 per cent or Rs 104 at Rs 61,460 per kg.

As bullion yields no interest it can become less attractive to investors when short-term US interest rates are hiked. It is, however, seen as a safe store of value during times of economic crises.

Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver logged significant gains, boosted by a sharp fall in US dollar index and a slight decline in US Treasury yields.

"Amid growing weakness in the US labor market, more than expected American workers applying for first-time unemployment benefits also appears to be adding to gold’s technical bullish momentum," he added.In the spot market, highest purity gold was sold at Rs 50,682 per 10 grams while silver was priced at Rs 61,087 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The spot prices of gold have dropped more than Rs 1,100 in the last two weeks, whereas the silver has declined about Rs 2,250 per kg in the same period under review.Gold prices are witnessing indecisiveness as growth worries, geopolitical uncertainty and spiralling inflation are pulling it up whereas firm US dollar and upside in bond yield is eroding gold’s sheen, said Ravi Singh, Vice President and Head of Research, ShareIndia.

"Investors are not able to decide whether to buy on dips or short on highs. The indecisiveness in gold may remain for sometime", he added.

Trading Strategy

"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,820 and resistance at $1,850 per ounce. MCX Gold June futures support lies at Rs 50,200 and resistance at Rs 50,800 per 10 gram," Tapan Patel, Senior Analyst (Commodities),HDFC NSE 3.06 % Securities.

Global markets

Spot gold was down 0.2 per cent at $1,838.81 per ounce, by 0258 GMT, tracking a slight uptick in the dollar on the day. US gold futures edged 0.1 per cent lower to $1,839.30. Gold prices have climbed about 1.5 per cent this week.

Spot silver fell 0.3 per cent to $21.83 per ounce, but it has gained about 3.6 per cent this week. Platinium dropped 0.7 per cent to $955.50, and palladium fell 0.1 per cent to $1,997.65. Both were set for weekly gains of about 1.7 per cent and 2.8 per cent, respectively.

Gold selling at Rs 50,510 per 10 gm today; silver trading at Rs 65,000 a kg

NEW DELHI: The price of 10 grams of 24-carat gold on Friday went up by Rs 220 to trade at Rs 50,510. At the same time,the rate of 1 kg of silver increased by Rs 4,000 to Rs 65,000.

The price of 10 grams of 22-carat gold became dearer by Rs 200 from the previous day's rate to trade at Rs 46,300, according to the Goodreturns website.

The price of 10 grams of 24-carat gold in Delhi and Mumbai is at par with the price of 10 grams of 24-carat gold in Bengaluru, Hyderabad, and Kolkata, with the precious metal trading at Rs 50,510 in these regions.

The price of 10 grams of 22-carat gold in Delhi and Mumbai is also at par with the price of 10 grams of 22-carat gold in Bengaluru, Hyderabad and Kolkata with the metal selling at Rs 46,300, in these regions.

However, the price of 10 grams of 24-carat gold and 22 carat gold in Chennai is above the other cities, as the precious metal is trading at Rs 51,870, and Rs 47,550 respectively.The price of gold varies in different regions based on certain parameters like the excise duty, making charges and state taxes.

In Delhi, 1 kg of silver is selling at Rs 60,600 meanwhile in Kolkata, Pune and Ahmedabad, the precious metal is trading at Rs 61,400.The rate of 1 kg of silver in in Chennai, Mumbai, Bengaluru and Hyderabad is Rs 65,000 for the day.

Edited by : R. Reena