Gold rates in India remained high after falling to a one-month low in the previous session. Gold futures up 0.55% on MCX 50,462 per 10 grams while silver jumped 1% 58,859 per kg. The yellow metal touched a one-month low on Thursday 50,000 levels.
Bullion in global markets rose 1% amid a slight fall in the dollar. Spot gold rose 1.1% to $1,647.19 an ounce. A weaker US dollar makes gold more attractive to other currency holders. But the dollar index for the week is poised for its biggest weekly gain in more than a month. Spot silver rose 1.4% to $19.74
On Wednesday the Fed raised interest rates by 75 basis points and Chairman Jerome Powell said it was “too premature” to think about halting its rate hikes.
Traders will be looking at US non-farm payrolls data later today, which could provide further indications on the Fed’s rate-hike stance.
Analysts say a strong payroll data will strengthen the Fed’s higher terminal rate currency and keep gold weak.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said: “Bulfire prices turned lower on Thursday with gold hitting a six-week low. On the other hand, silver prices declined from the day’s low. The US dollar gained momentum. Advancing indices and rising Treasury yields, coupled with lower crude oil prices, put pressure on the precious metals.
“On Friday, the US economic calendar will reveal employment data along with the nonfarm payrolls October report. Investors will keep an eye on the unemployment rate and wages, which may indicate a weakening in the labor market.”
Sleep Support is at $1624-1616, while resistance lies at $1648-1658. Silver has support at $18.95-18.78, while resistance lies at $19.58-19.72. Gold has support in rupee terms 50,020-49,850, while resistance is at 50,440, 51,610. support for silver 57,680-57,210, while resistance is at 58,780-59,210.” (with agency input)
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