Home / Markets / Commodities /  Gold prices rise today, now just 3,000 away from all-time highs

Gold edged higher today with prices rising over 53,000 per 10 gram while silver rates also hardened, in keeping with the recent upward trend in precious metals. MCX gold contracts were up 0.5% to 53003 per 10 gram while silver futures contracts rose 0.6% to 61954 per kg. Gold has had a volatile journey this year after rising to 55,000 levels in March following the Ukraine crisis. In India, gold rates had hit a record of 56,200 in August 2020 amid the coronavirus pandemic.

“Overall outlook for gold prices are positive. Dollar index has tumbled from 20-year highs to around 105 levels and it may go up to 103 levels in short term after China and US dropping hint at G-20 summit to strengthen their ties. So, December future contract of gold rates may go up to 53,500 levels in short term," said Anuj Gupta, Vice President — Research at IIFL Securities.

Stocks and currencies were volatile today after a rocket that struck inside the Polish border fueled fears of an escalation of the war in Ukraine. Though gold is used as a safe investment during times of political and financial uncertainty, rising interest rates tend to dull bullion's appeal as the metal pays no interest.

In global markets, spot gold was down 0.4% at $1,771.17 per ounce. In the previous session, bullion had hit a 3-month high as data showed US producer prices increased less than expected in October, further evidence that inflation was starting to subside.

“We are seeing a few risk off moves in Asia session today after Poland said a Russian made missile fell on a village near Ukraine, killing two people. President Biden later said it was unlikely the missile was fired from Russia. This has eased some nervousness," IFA Global said in a note.

Asian currencies are trading weaker against the dollar. The Indian rupee declined against the US currency today. The rupee was trading at 81.29 to the dollar, down from 81.0950 in the previous session. India imports most of its gold requirement. So apart from international prices, the rupee dollar rate and taxes determine domestic bullion prices. (With Agency Inputs)

 

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