Gold prices remained in a limited range in the Indian markets today amid futures trading on MCX 50,065 more 50,386 per gram. In comparison, gold was stable on 50,200 in the previous session. silver futures. jumped 1% from 56,640 per kg. In global markets, spot gold was trading marginally higher at $1,631.54 an ounce. Spot silver rose 0.2% to $18.47 an ounce.
Dhanteras, which marks the first day of Diwali in India, is considered auspicious to buy gold and silver as part of the Hindu celebration.
Rising yields in major bond markets and the prospect of further tightening of monetary policy by most central banks are weighing on gold prices. The precious metal is trading sharply below its March high of $2,000. The prices in India had touched 55,000 levels in March.
The Fed is expected to raise interest rates by 75 basis points at its policy meeting next month, following a higher-than-expected rise in US consumer prices in September. On Wednesday, Federal Reserve Bank of Minneapolis President Neil Kashkari said demand in the US job market remains strong and that underlying inflationary pressures may not have peaked yet.
whereas Sleep Often considered a hedge against inflation, rising US interest rates increase the opportunity cost of holding the zero-yielding metal.
Jatin Trivedi, VP Research Analyst, LKP Securities, said while gold remained in a range, MCX prices saw some support as rupee depreciation pushed gold lower. The rupee today hit a new low of 83 per US dollar before pulling back. The rupee is down almost 10% against the US dollar so far this year.
“Gold prices in the domestic market may be in a range as the festive season sees physical demand for prices and a depreciation in the rupee. But with the dollar index rising, Comex Gold is facing a selloff, so there is range bound volatility.”
In a note, Motilal Oswal said: “On the domestic front, gold and silver prices pick up during the festive season. The fall in the precious metal was restricted after it depreciated to 10 per cent along with a 5% hike in basic customs duty on gold imports. Since India is a price taker country, any movement in COMEX affects our prices. The macro-economic background has the upper hand this year, with the main focus being on central bank monetary policy, inflationary pressures and geopolitical tensions. If there is a change in these factors, we may see some short covering, which could take gold prices much higher and faster, but we think until we see an aggressive change in stance by major central bankers . With interest rates hiked, we may continue to see pressure on gold prices.”
However, the brokerage said, “Amidst these uncertainties, it is advisable to have gold and silver in one’s portfolio. Therefore, anyone who wants to invest in gold and silver with a medium to long-term outlook, can invest at these levels.” can start doing.” (with agency input)
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