iStockNEW DELHI: Gold prices edged up on Wednesday, nursing the wounds after the selloff seen in the previous session, which had pushed the yellow metal to a seven-month low after the dollar halted its rally.
Gold lost more than 2 per cent on Tuesday, as sharp gains in the US dollar and rising interest rates sapped appetite for the non-yielding asset and sent prices tumbling. Gold found some respite as the greenback slipped marginally.
Gold futures on MCX were trading higher, gaining 0.19 per cent or Rs 98 at Rs 51,400 per 10 grams. Similarly, silver futures traded marginally up by 0.10 per cent or Rs 56 at Rs 56,921 per kg.
Pritam Patnaik, Head - Commodities, Axis Securities said that gold prices took a knock yesterday as the dollar index rose to a two-decade high amidst rising recession concerns and the probability of further Covid-led lockdown in China.
"Growing fears of recession is no longer limited to the US alone, as the Germany, Italy and Bank of England also indicated a grim economic outlook," he added. "Traders will closely track the updates from FOMC and the US PMI for June."
Physical gold dealers in India offered steep discounts last week as demand remained weak, with the import tax hike likely to further sap interest, while top consumer China saw activity bounce back slowly as it emerged from COVID-led curbs.
In the spot market, the highest purity gold was sold at Rs 52,304 per 10 grams while silver was priced at Rs 58,153 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained about Rs 1,400 in the last two weeks, whereas silver has plunged more than 2,900 per kg in the same period under review.
Trading Strategy
"We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,750 and resistance at $1,785 per ounce. MCX Gold Aug futures support lies at Rs 50,950 and resistance at Rs 51,600 per 10 grams," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.4 per cent to $1,770.71 per ounce. US gold futures firmed 0.3 per cent to $1,768.80.
Spot silver firmed 0.4 per cent to $19.27 per ounce, while platinum was flat at $865.48, and palladium gained 0.3 per cent to $1,938.28.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Gold lost more than 2 per cent on Tuesday, as sharp gains in the US dollar and rising interest rates sapped appetite for the non-yielding asset and sent prices tumbling. Gold found some respite as the greenback slipped marginally.
Gold futures on MCX were trading higher, gaining 0.19 per cent or Rs 98 at Rs 51,400 per 10 grams. Similarly, silver futures traded marginally up by 0.10 per cent or Rs 56 at Rs 56,921 per kg.
Pritam Patnaik, Head - Commodities, Axis Securities said that gold prices took a knock yesterday as the dollar index rose to a two-decade high amidst rising recession concerns and the probability of further Covid-led lockdown in China.
"Growing fears of recession is no longer limited to the US alone, as the Germany, Italy and Bank of England also indicated a grim economic outlook," he added. "Traders will closely track the updates from FOMC and the US PMI for June."
Physical gold dealers in India offered steep discounts last week as demand remained weak, with the import tax hike likely to further sap interest, while top consumer China saw activity bounce back slowly as it emerged from COVID-led curbs.
In the spot market, the highest purity gold was sold at Rs 52,304 per 10 grams while silver was priced at Rs 58,153 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained about Rs 1,400 in the last two weeks, whereas silver has plunged more than 2,900 per kg in the same period under review.
Trading Strategy
"We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,750 and resistance at $1,785 per ounce. MCX Gold Aug futures support lies at Rs 50,950 and resistance at Rs 51,600 per 10 grams," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.4 per cent to $1,770.71 per ounce. US gold futures firmed 0.3 per cent to $1,768.80.
Spot silver firmed 0.4 per cent to $19.27 per ounce, while platinum was flat at $865.48, and palladium gained 0.3 per cent to $1,938.28.
(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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