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    Gold rate today: Yellow metal trades flat, silver drops marginally

    Synopsis

    The spot prices of gold have dropped more than Rs 1,100 in the last two weeks, whereas the silver has declined about Rs 2,250 per kg in the same period under review.

    Gold price today
    NEW DELHI: Gold prices traded flat on Friday, set for a gain on a weekly basis after more than a month. The US dollar receded from the two-decade high and mounting concerns over US economic growth revived safe-haven demand.

    "We have seen a recovery in gold and silver prices from the oversold zone," said Anuj Gupta, Vice President - Commodity and Currency Research, IIFL Securities.

    Gold futures on MCX were trading marginally higher by 0.09 per cent or Rs 44 up at Rs 50,588 per 10 grams. However, silver futures tumbled about 0.17 per cent or Rs 104 at Rs 61,460 per kg.

    As bullion yields no interest it can become less attractive to investors when short-term US interest rates are hiked. It is, however, seen as a safe store of value during times of economic crises.

    Rahul Kalantri, VP Commodities, Mehta Equities said gold and silver logged significant gains, boosted by a sharp fall in US dollar index and a slight decline in US Treasury yields.

    "Amid growing weakness in the US labor market, more than expected American workers applying for first-time unemployment benefits also appears to be adding to gold’s technical bullish momentum," he added.

    In the spot market, highest purity gold was sold at Rs 50,682 per 10 grams while silver was priced at Rs 61,087 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

    The spot prices of gold have dropped more than Rs 1,100 in the last two weeks, whereas the silver has declined about Rs 2,250 per kg in the same period under review.

    Gold prices are witnessing indecisiveness as growth worries, geopolitical uncertainty and spiralling inflation are pulling it up whereas firm US dollar and upside in bond yield is eroding gold’s sheen, said Ravi Singh, Vice President and Head of Research, ShareIndia.

    "Investors are not able to decide whether to buy on dips or short on highs. The indecisiveness in gold may remain for sometime," he added.

    Trading Strategy
    "We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,820 and resistance at $1,850 per ounce. MCX Gold June futures support lies at Rs 50,200 and resistance at Rs 50,800 per 10 gram," Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

    Global markets
    Spot gold was down 0.2 per cent at $1,838.81 per ounce, by 0258 GMT, tracking a slight uptick in the dollar on the day. US gold futures edged 0.1 per cent lower to $1,839.30. Gold prices have climbed about 1.5 per cent this week.

    Spot silver fell 0.3 per cent to $21.83 per ounce, but it has gained about 3.6 per cent this week. Platinum dropped 0.7 per cent to $955.50, and palladium fell 0.1 per cent to $1,997.65. Both were set for weekly gains of about 1.7 per cent and 2.8 per cent, respectively.



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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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