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    Gold rate today: Yellow metal drops marginally, silver breaches Rs 62,000

    Synopsis

    Gold futures on MCX were edged lower slightly by 0.14 per cent or Rs 74 to Rs 51,083 per 10 grams. However, silver futures were trading flat, marginally lower by 0.02 per cent or Rs 12 at Rs 61,964 per kg.

    GoldGetty Images
    NEW DELHI: Gold prices edged lower on Wednesday from two week highs, hit in the previous session. However, the uncertainty over the trajectory of inflation supported the appeal for safe haven.

    The firm dollar dented and rose in benchmark US 10-year Treasury yields after a drop in the previous session to a one-month low, pressuring demand for zero-yield gold.

    Gold futures on MCX were edged lower slightly by 0.14 per cent or Rs 74 to Rs 51,083 per 10 grams. However, silver futures were trading flat, marginally lower by 0.02 per cent or Rs 12 at Rs 61,964 per kg.

    The dollar index firmed after hitting its lowest level in a month in the previous session, making greenback-priced bullion more expensive for buyers holding other currencies.

    Rahul Kalantri, VP Commodities, Mehta Equities said that gold and silver prices rose to their highest in two weeks, with the safe-haven metal benefiting from a wilting US dollar and as Treasury yields declined on subdued risk appetite.

    "New home sales fell to a seasonally adjusted annualized rate of 591,000 homes in March down 16.65, the US Commerce Department said on Tuesday. February’s sales were revised to rate of 709,000 units," he added.

    In the spot market, highest purity gold was sold at Rs 51,292 per 10 grams while silver was priced at Rs 61,711 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.

    The spot prices of gold have inched up about Rs 800 per 10 grams in the last one week, whereas the silver has gained more than Rs 400 per kg in the same period under review.

    "Gold prices are rising a bid on weaker equities and geopolitical tensions. The dollar is easing again and will continue to support gold until there is some hawkish statement from the Federal Reserve," said Ravi Singh, Vice President and Head of Research, ShareIndia.

    Trading Strategy

    "We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,840 per ounce and resistance at $1,876 per ounce. MCX Gold June support lies at Rs 50,900 and resistance at Rs 51,500 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

    Global markets

    Spot gold eased 0.2 per cent to $1,862.48 per ounce, as of 0219 GMT, after rising to its highest level since May 9 of $1,869.49 on Tuesday. US gold futures dipped 0.2 per cent to $1,861.60.

    Spot silver dipped 0.2 per cent to $22.05 per ounce, while platinum gained 0.1 per cent to $954.90, while palladium dropped 0.5 per cent to $1,996.30.






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    Download 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

    ...more
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