NEW DELHI: Gold prices slipped lower on Wednesday from a two-month peak as an uptick in the US dollar hurt the bullion’s appeal. The downside was, however, contained as the yellow metal got support amid global inflation worries.
Gold futures on MCX were trading lower by 0.23 per cent or Rs 109 at Rs 48,178 per 10 grams. However, silver futures were up 0.24 per cent or Rs 115 at Rs 64,725 per kg.
The surge in crude oil has raised worries over a spike in inflation ahead of the winter season. Meanwhile, China’s factory gate prices rose at their fastest pace in 26 years in October, beating forecasts and further squeezing profit margins for producers already grappling with soaring coal prices and other commodity costs due to a power crunch.
Ravi Singh, Vice President & Head of Research, Share India said that gold price on MCX traded in a range, with upward bias as most of the indicators are in the positive zone. The demand for gold is also expected to increase.
In the spot market, highest purity gold was sold at Rs 48,217 per 10 grams while silver was priced at Rs 64,780 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has jumped about Rs 675 per 10 grams compared to the last one week, whereas Silver has surged more than Rs 1,600 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to up with resistance at $1833/$1852, support at $1815 per ounce. MCX Gold December support lies at Rs 47,800 and resistance at Rs 48,500 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold fell 0.2 per cent to $1,827.05 per ounce by 0255 GMT, after hitting its highest since Sept. 3 earlier in the session. U.S. gold futures edged 0.1 per cent lower to $1,829.70.
Spot silver fell 0.1 per cent to $24.25 per ounce. Platinum eased 0.6 per cent to $1,052.68, while palladium rose 0.4 per cent to $2,027.97.