NEW DELHI: Gold prices edged lower on Monday after a solid US jobs report last week boosted the prospect of aggressive interest rate hikes by the Federal Reserve, lifting the dollar and treasury yields.
A solid US payrolls report pushed back against talk of recession and lifted the dollar index to its highest since July 28, making gold more expensive for other currency holders.
Gold futures on
were down, marginally lower by 0.10 per cent or Rs 52 at Rs 51,822 per 10 grams. However, silver futures were flat, marginally up merely by 0.01 per cent or Rs 4 at Rs 57,368 per kg.
Focus this week will be on US inflation data due on Wednesday that could offer more clues on the Fed rate hike path. Also, tensions between China and Taiwan will also be on the radar of investors.
Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver prices fell after the announcement of a surprisingly strong US employment report.
“The US dollar index and US Treasury yields jumped on the jobs news, which in turn pulled down gold and silver prices,” he added.
In the spot market, the highest purity gold was sold at Rs 52,019 per 10 grams while silver was priced at Rs 57,362 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have jumped about Rs 1,200 per 10 grams in the last two weeks, whereas silver has gained more than Rs 2,600 per kg in the same period under review.
Trading Strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,760 and resistance at $1,786 per ounce. MCX Gold October support lies at Rs 51,500 and resistance at Rs 52,100 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Securities.
Global markets
Spot gold was down 0.1 per cent at $1,772.27 per ounce, as of 0303 GMT, after dropping 1 per cent in the previous session. US gold futures eased 0.1 per cent to $1,790.
Spot silver was flat at $19.87 per ounce, platinum fell 0.2 per cent to $929.96, and palladium edged 0.1 per cent lower at $2,123.94.
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