Gold rates in India were slightly higher today in tandem with similar price movement in global markets while silver rates jumped. Gold futures on MCX were up 0.17% to one-week high of ₹48,006 per 10 gram while silver rates jumped 1% to ₹61,494 per 10 gram. In global markets gold edged higher today but gains were capped amid a stronger US dollar. Spot gold rose 0.2% to $1,810.38 per ounce. The dollar index, which measures the greenback against a basket of other major currencies, was higher at 95.580.
“Payroll data showed that 467000 jobs were added last month which could help central bank in raising rates. Technically gold is taking support of $1790 after this roller coaster data reflects that bulls somewhere are taking control around these levels but are helpless around $1815 and $1817 kind of levels. A move above $1817 can be used for buying for target of $1822 and $1826,” said Vidit Garg, director at MyGoldKart.
Gold is considered a hedge against inflation and geopolitical risks, yet rate hikes would raise the opportunity cost of holding non-yielding bullion. Traders will take further cues from this week’s US inflation data, as investors brace for more volatility across assets. A jump in US government bond yields have resulted in volatility across financial assets.
US data released last week showed the labour market remaining strong with nonfarm payrolls jumping by 467,000 jobs last month. The US inflation data is scheduled to be released on Thursday.
Among other precious metals, silver rose 0.9% to $22.67 per ounce while platinum edged 0.1% up to $1,025.
Analysts say that increase in volatility in financial assets is amid debate whether economic growth can continue as central banks start to scale back stimulus measures.
“The biggest concern for central banks is rising inflationary pressure which has been aggravated by rising energy and commodity prices. Trend in US dollar, bond yields and equities may affect commodities,” Kotak Securities said in a recent report. (With Agency Inputs)
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