Home / Markets / Commodities /  Gold prices today fall from one-month highs but silver rates remain firm

Gold prices in India edged lower from one-month highs as investors remained cautious ahead of key US data. On MCX, gold futures were down 0.14% to 51,897 per 10 gram while silver futures rose 0.34% to 61,554 per kg. In global markets, gold remained in a narrow range as investors braced for a U.S. jobs report, which could influence the Federal Reserve's rate hike trajectory. Spot gold was flat at 0.1% at $1,713.20 per ounce.

Precious metals displayed cautious moves as investors await the non-farm payrolls data and unemployment rate from U.S. later today for clues on Fed’s monetary policy path. Similarly, U.S. dollar index paused after two days of straight gains ahead of crucial job data from U.S," domestic brokerage Geojit said in a note. 

While gold is considered a hedge against inflation, higher US rates reduce the non-yielding bullion's appeal and boost the dollar. Silver rates firmed 0.6% to to $20.77 per ounce. In international as well as domestic markets, gold prices have risen about 3% so far this week.

Gold may remain below $1720/oz ahead of the payrolls figures on indecision while any robust job additions reported may lead to renewed strength in dollar and push prices lower towards the crucial $1700/oz," Kotak Securities said in a note. 

Silver is trading higher today but prices may face pressure due to limited global risk, the brokerage said.

"A strong rebound in the U.S. dollar index from early week lows has been limiting the upside in the precious metal markets. Gold and Silver prices are headed for the largest weekly gain since March ahead of key US jobs data that will shape up expectations about how much more tightening is yet to come from the Federal Reserve," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect gold and silver to remain volatile in today’s session ahead of the U.S. job reports. Gold has support at $1702-1688, while resistance is at $1728-1745. Silver has support at $20.20-19.82, while resistance is at $20.75-20.95. In INR terms gold has support at 51,720-51,540, while resistance is at Rs52,210, 52,350. Silver has support at Rs60,650-59,940, while resistance is at Rs61,880–62,410." (With Agency Inputs)


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