iStockNEW DELHI: Gold prices edged higher on Monday on the back of softer dollar, despite rate hike fears worldwide, following their aggressive monetary policies, capping gains in bullion.
The dollar index was down 0.2 per cent, making greenback-denominated gold less expensive for overseas buyers. Fed policymakers have been resolute in raising interest rates despite the turmoil in global financial markets.
Gold futures on MCX were trading up by 0.40 per cent or Rs 201 at Rs 50,395 per 10 grams. However, silver futures were trading higher by 0.98 per cent or Rs 558 at Rs 57,416 per kg.
Rising interest rates dim bullion's appeal as they increase the opportunity cost of holding the non-yielding asset, which has corrected sharply from its recent highs.
Pritam Patnaik, Head - Commodities, Axis Securities said that gold prices have off late been largely a slave to the dollar volatility. The USD has mostly dictated the gold price movement in the recent past, he said.
"In the long run, the value of an asset like is bound to recover, provided that the decibel of the hawkish central bank commentary reduces," he added. "Till then, sell on rise strategy will see a lot of interest."
The physical gold market in India flipped to a premium last week as demand improved ahead of festivities. India, the world's second-biggest consumer of gold, slashed the base import prices of the metal on Friday.
In the spot market, the highest purity gold was sold at Rs 50,302 per 10 grams while silver was priced at Rs 56,338 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained almost Rs 1,000 per 10 grams, whereas Silver has jumped more than Rs 1,200 per kg in the same period under review.
Ravindra V Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities said that gold trades higher week as the softer dollar and easing treasury yields provided the much-needed support to the bulls.
"The bullish momentum might continue in COMEX Gold traders might be slightly cautious ahead of the US ISM manufacturing PMI data, he added.
Global markets
Spot gold was up 0.3 per cent at $1,665.29 per ounce, as of 0115 GMT. US gold futures ticked 0.1 per cent higher to $1,673.30.
Spot silver rose 0.7 per cent to $19.12 per ounce, platinum was 0.3 per cent higher at $861.50 and palladium was up 0.5 per cent at $2,167.75.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The dollar index was down 0.2 per cent, making greenback-denominated gold less expensive for overseas buyers. Fed policymakers have been resolute in raising interest rates despite the turmoil in global financial markets.
Gold futures on MCX were trading up by 0.40 per cent or Rs 201 at Rs 50,395 per 10 grams. However, silver futures were trading higher by 0.98 per cent or Rs 558 at Rs 57,416 per kg.
Rising interest rates dim bullion's appeal as they increase the opportunity cost of holding the non-yielding asset, which has corrected sharply from its recent highs.
Pritam Patnaik, Head - Commodities, Axis Securities said that gold prices have off late been largely a slave to the dollar volatility. The USD has mostly dictated the gold price movement in the recent past, he said.
"In the long run, the value of an asset like is bound to recover, provided that the decibel of the hawkish central bank commentary reduces," he added. "Till then, sell on rise strategy will see a lot of interest."
The physical gold market in India flipped to a premium last week as demand improved ahead of festivities. India, the world's second-biggest consumer of gold, slashed the base import prices of the metal on Friday.
In the spot market, the highest purity gold was sold at Rs 50,302 per 10 grams while silver was priced at Rs 56,338 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained almost Rs 1,000 per 10 grams, whereas Silver has jumped more than Rs 1,200 per kg in the same period under review.
Ravindra V Rao, CMT, EPAT VP-Head Commodity Research, Kotak Securities said that gold trades higher week as the softer dollar and easing treasury yields provided the much-needed support to the bulls.
"The bullish momentum might continue in COMEX Gold traders might be slightly cautious ahead of the US ISM manufacturing PMI data, he added.
Global markets
Spot gold was up 0.3 per cent at $1,665.29 per ounce, as of 0115 GMT. US gold futures ticked 0.1 per cent higher to $1,673.30.
Spot silver rose 0.7 per cent to $19.12 per ounce, platinum was 0.3 per cent higher at $861.50 and palladium was up 0.5 per cent at $2,167.75.
(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.
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