NEW DELHI: Gold and silver futures rose on Monday as persistent concerns over the fate of debt-laden property giant China Evergrande and its broader impact bolstered the precious metal’s safe-haven appeal.
Evergrande missed a payment on offshore bonds last week, with further payment due this week. This sent shivers down the spine of equity investors who see a risk to the system.
Gold futures on MCX were up 0.33 per cent, or Rs 152, at Rs 46,147 per 10 gram. Silver futures advanced 1.05 per cent or Rs 628 to Rs 60,583 per kg.
“Gold prices pared some losses on Monday supported by a weaker dollar. Gold prices have capped upside post Fed comments to unwind pandemic related stimulus and to raise key interest rates by end of 2022,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 46,274 while silver was priced at Rs 60,410 on Friday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,740 and resistance at $1,770 per ounce. MCX Gold October support lies at Rs 45,800 and resistance at Rs 46,300 per 10 gram,” said Patel.
Global markets
Spot gold rose 0.5 per cent to $1,757.79 per ounce by 0127 GMT, while US gold futures were up 0.3 per cent at $1,757.30.
Physical gold demand in top consumer China rose last week as buyers sought cover from the potential fallout of the Evergrande crisis coupled with factors including a seasonal pick-up in activity.
Silver rose 0.9 per cent to $22.61 per ounce. Platinum climbed 1 per cent to $992.00, while palladium inched 0.1 per cent higher to $1,973.47.