NEW DELHI: Gold prices edged lower on Tuesday, weighed down by an uptick in the US dollar as investors eye a slew of key central bank meetings this week. A stronger greenback makes gold more expensive for buyers holding other currencies.
Gold futures on MCX were trading marginally lower, down 0.12 per cent or Rs 58 at Rs 48,142 per 10 grams. Silver futures lost 0.27 per cent or Rs 178 to Rs 65,961 per kg.
“Gold was rangebound as investor focus now shifts to the Bank of Japan and European Central Bank meetings due on Thursday, while the next US Federal Reserve will meet on November 2 and 3,” said Vidit Garg, Director, MyGoldKart.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion that pays no interest.
Ravi Singh, Vice President & Head of Research, Share India said gold is technically in a very strong uptrend taking cues from the Comex Gold which was also supported by increasing worries about problematic price inflation in the US.
The increased demand for domestic gold due to improved retail buying amid lucrative offers has also supported the prices, he added.
In the spot market, the highest purity gold was sold at Rs 48,142 per 10 grams while silver was priced at Rs 65,653 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained over Rs 1,000 per 10 grams in the last two weeks, whereas Silver has jumped about Rs 4,150 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,785 and resistance at $1,820 per ounce. MCX Gold December support lies at Rs 47,900 and resistance at Rs 48,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities) at HDFC Securities.
Global Markets
Spot gold fell 0.1 per cent to $1,805.96 per ounce by 0116 GMT. U.S. gold futures were flat at $1,806.60.
Spot silver fell 0.1 per cent to $24.53 per ounce. Platinum edged 0.1 per cent down to $1,056.35 and palladium gained 0.2 per cent to $2,055.16.