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Business News/ Markets / Commodities/  Gold prices today rise but still down sharply from last week's highs
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Gold prices today rise but still down sharply from last week's highs

In India, gold prices had risen to ₹53,200 per 10 gram last week.

Gold rates today remained near ₹52,692 per 10 gramPremium
Gold rates today remained near 52,692 per 10 gram

Gold prices in India rose for the second day in a row, tracking gains in global rates. On MCX, gold futures rose 0.5% to 52,692 per 10 gram while silver jumped 0.7% to 62,080 per kg. In international markets, the yellow metal rose to near one-week high, supported by a weaker dollar and a drop in US bond yields after minutes from the U.S. Federal Reserve's November meeting signalled it may soon slow the pace of interest rate hikes. Spot silver was little changed at $21.51 per ounce.

Spot gold was up 0.4% to $1,756.08 per ounce. The minutes of the Fed's November 1-2 policy meeting, released on Wednesday, showed a "substantial majority" of Fed policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes.

"Gold traded in a small positive range near 52,650 as dollar weakness helped Comex gold stay above $1755 and MCX Gold above 52,600. Thanksgiving festive shall keep prices muted in session ahead as participation will be less in futures trading," said Jateen Trivedi, VP Research Analyst at LKP Securities.

In India, gold prices had risen to 53,200 last week.

The dollar index fell 1% overnight, making bullion less expensive for overseas buyers. US bond yields also fell on investor expectations of a dovish path for the Federal Reserve. Higher interest rates and a strong dollar have put a leash on gold's traditional status as a hedge against inflation and other uncertainties this year.

“The US dollar fell after the release of FOMC meeting minutes on Wednesday. As expected, it showed the majority of the policymakers were with the view of slower rate hikes as the Fed’s aggressive stance is impacting the economic growth. Although the minutes indicated the end of jumbo rate hikes, the policy makers were uncertain on when the end point of the rate hikes. Smaller rate hikes by the Fed are positive for risk assets as well as for safe haven assets like gold as dollar weakness supports," said Ravindra Rao, Head Commodity Research, Kotak Securities Ltd.

Market participants now widely expect a 50 bps rate increase at the Fed's December meeting after the US central bank delivered a fourth consecutive 75 basis-point (bps) rate hike earlier this month. (With Agency Inputs)

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Published: 24 Nov 2022, 08:44 PM IST
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