The US Consumer Price Index (CPI) report for October is due later today. Economists expect core inflation to decline on both a monthly and annual basis. Gold could rise if there are signs of slowing inflation.
Gold futures on
were trading flat, mostly higher by 0.11% or Rs 55 to Rs 51,561 per 10 grams. However, silver futures fell by 0.32% or Rs 199 to Rs 61,362 per kg.
Gold is seen as a hedge against inflation, which rising rates aim to tackle, thus diminishing the metal’s appeal. Higher interest rates also make other assets more attractive compared to non-interest bearing bullion.
Ravindra Rao, CMT, vice president responsible for commodities research at EPAT, Kotak Securities, said gold is rangebound amid uncertainty over the state midterm elections. United States and the publication of inflation data in the United States.
“Economists expect lower monthly and annual core CPI figures that could support gold prices, as lower inflation could prompt the Fed to slow its pace of rate hikes” , he added.
The World Gold Council said in a note on Friday that a stable local gold price, weak RMB and economic uncertainty supported gold sales in regions such as Beijing and Shanghai in October.
In the spot market, the highest purity gold was sold at Rs 51,514 per 10 grams while silver was priced at Rs 61,550 per kg on Wednesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have risen above the 51,000 rupees mark in almost a month, while silver prices have jumped around 6,000 rupees per kg in the past three weeks.
Rahul Kalantri, VP of Commodities, Mehta Equities, said gold and silver prices were trading in a narrow range, but the bulls still had the technical momentum to suggest price higher at short term.
“Safe haven demand was presented in precious metals markets during the previous session as cryptocurrency markets became extremely shaky,” he added.
Bullion charts show profit booking with possible decline in the coming days, said Amit Khare, AVP-Research Commodities, Ganganagar Commodity. “Momentum Indicator RSI also indicates the same,” he added.
He advised traders to take new short gold and silver potions with support for the yellow metal at Rs 51,300-51,000 and resistance at 51,700-51,900, while support for silver was at Rs 61,000-60,000 and resistance at Rs 62,000-62,500.
Spot gold was flat at $1,706.76 an ounce as of 0220 GMT. US gold futures fell 0.2% to $1,709.80.
Spot silver rose 0.3% to $21.06. Platinum climbed 0.1% to $986.07, while palladium fell 0.1% to $1,862.62.
Spot silver rose 0.1% to $21.36. Platinum rose 0.6% to $1,003.40 and palladium was flat at $1,920.40.
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