iStockGold prices edged higher on Friday on the back of a weaker dollar, but the gains were capped amid fears of aggressive rate hikes by the US Federal Reserve.
Gold futures on MCX were trading up by 0.17 per cent or Rs 83 at Rs 50,270 per 10 grams. However, silver futures were trading higher by 0.46 per cent or Rs 261 at Rs 56,421 per kg.
Gold prices have fallen 20 per cent since scaling above the key $2,000 per ounce level in March as rapid US monetary tightening made non-yielding gold less attractive and boosted the dollar to multi-year peak.
Gold is seen as a hedge against inflation and economic uncertainties but rate hikes have dented the non-yielding bullion's appeal as it has pushed the dollar to multi-year highs.
ICICIDirect Research said that gold prices advanced yesterday amid a drop in the US dollar index and US 10-year treasury yields. However, stronger than expected macroeconomic data from the US capped further gains in bullion prices, it added.
"Gold prices are expected to trade with a positive bias for the day amid weakness in the US dollar index," it added. "It is likely to surpass the hurdle of Rs 50,150 to continue its upward move towards Rs 50,500 in the coming trading sessions."
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
In the spot market, the highest purity gold was sold at Rs 50,003 per 10 grams while silver was priced at Rs 55,658 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have been able to regain Rs 50,000 per 10 grams on a closing basis after 10 straight sessions, whereas silver has jumped more than Rs 1,134 per kg in just one session.
Trading Strategy
Gold prices have recovered from the lows in anticipation of possible recession due to rate hikes, said Ravi Singh, Vice President and Head of Research, ShareIndia. "The weakness in the US dollar after a sharp fall in tread yields has supported the gold up move."
He suggested buying gold near Rs 49,700 for the target of Rs 50,100, whereas one can sell the yellow metal below Rs 49,500 for the target of Rs 49,300.
Global markets
Spot gold was up 0.2 per cent at $1,663.79 per ounce, as of 0110 GMT. While prices are headed for their biggest weekly gain in seven, it is down 2.8 per cent for the month so far. US gold futures rose 0.3 per cent to $1,673.10.
Spot silver rose 0.2 per cent to $18.86 per ounce, platinum was steady at $865.46 and palladium was up 0.5 per cent at $2,211.59.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Gold futures on MCX were trading up by 0.17 per cent or Rs 83 at Rs 50,270 per 10 grams. However, silver futures were trading higher by 0.46 per cent or Rs 261 at Rs 56,421 per kg.
Gold prices have fallen 20 per cent since scaling above the key $2,000 per ounce level in March as rapid US monetary tightening made non-yielding gold less attractive and boosted the dollar to multi-year peak.
Gold is seen as a hedge against inflation and economic uncertainties but rate hikes have dented the non-yielding bullion's appeal as it has pushed the dollar to multi-year highs.
ICICIDirect Research said that gold prices advanced yesterday amid a drop in the US dollar index and US 10-year treasury yields. However, stronger than expected macroeconomic data from the US capped further gains in bullion prices, it added.
"Gold prices are expected to trade with a positive bias for the day amid weakness in the US dollar index," it added. "It is likely to surpass the hurdle of Rs 50,150 to continue its upward move towards Rs 50,500 in the coming trading sessions."
Gold premiums in top consumer China climbed last week, helped by strong demand for bullion, while prices in India traded at a discount for the first time in four weeks due to an uptick in domestic rates.
In the spot market, the highest purity gold was sold at Rs 50,003 per 10 grams while silver was priced at Rs 55,658 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have been able to regain Rs 50,000 per 10 grams on a closing basis after 10 straight sessions, whereas silver has jumped more than Rs 1,134 per kg in just one session.
Trading Strategy
Gold prices have recovered from the lows in anticipation of possible recession due to rate hikes, said Ravi Singh, Vice President and Head of Research, ShareIndia. "The weakness in the US dollar after a sharp fall in tread yields has supported the gold up move."
He suggested buying gold near Rs 49,700 for the target of Rs 50,100, whereas one can sell the yellow metal below Rs 49,500 for the target of Rs 49,300.
Global markets
Spot gold was up 0.2 per cent at $1,663.79 per ounce, as of 0110 GMT. While prices are headed for their biggest weekly gain in seven, it is down 2.8 per cent for the month so far. US gold futures rose 0.3 per cent to $1,673.10.
Spot silver rose 0.2 per cent to $18.86 per ounce, platinum was steady at $865.46 and palladium was up 0.5 per cent at $2,211.59.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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