Gold prices in India today keep rising. Now, less than ₹500 away from all-time highs
1 min read 04 Jan 2023, 12:33 PM ISTBullion is witnessing safe-haven demand at the start of the new year, along with technical buying amid bullish chart, say analysts
PremiumGold prices today extended New Year's gains by edging closer to all-time highs. On MCX, gold futures were up 0.7% to ₹55,975 per 10 gram while silver rose 0.3% to ₹70,135 per kg. In August 2020, gold had hit highs of ₹56,200 amid the covid crisis. After posting strong gains in the final quarter of 2022, global gold rates have edged higher in the New Year with spot rate today up 0.3% at $1,844.85 per ounce, supported by a pullback in the dollar. But traders remained cautious as they awaited minutes from the Federal Reserve's December policy meeting.
Gold broadly has been in a bullish trend since October 2022 on back of recession fears. Spot silver in global markets rose 0.4% to $24.08.
“Bullion is witnessing safe-haven demand at the start of the new year, along with technical buying amid bullish charts. Risk aversion is seen early this week as global stock markets remain wobbly amid concerns about weakening economic growth in 2023 for major industrialized countries," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
“Benchmark U.S. 10-year Treasury yields were near their lowest in a week, reducing the opportunity cost of holding non-yielding gold. The market focus is now on the release on Wednesday of the minutes from the Fed's Dec. 13-14 policy meeting as well as other economic data expected this week. We expect gold and silver prices to remain volatile in today’s session ahead of the FOMC meeting minutes report," he added.
Gold, according to Rahul Kalantri, has support at $1828-1817 while resistance is at $1855-1868. Silver has support at $23.72-23.55, while resistance is at $24.30-24.48.
“In rupee terms, gold has support at ₹55,240-55,050, while resistance is at ₹55,680, 55,850. Silver has support at Rs69,450-68,980, while resistance is at Rs70,420–70,780," he said.
Minutes from the Fed's December 13-14 policy meeting are due later today. The U.S. central bank had raised rates by 50 basis points (bps) in December after four straight hikes of 75 bps each.
Bullion is seen as a hedge against inflation, but rising rates dull non-yielding asset's appeal.
Analysts are watching covid situation in China, the world's biggest consumer of gold, after the country's abruptly lifted COVID restrictions in early December. (With Agency Inputs)
