Gold prices today rise for 3rd day in a row, near 3-month high, silver rates rise1 min read . Updated: 08 Nov 2021, 09:46 AM IST
- Fed's gradual approach to monetary tightening and inflation concerns are supporting gold rate today
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Gold price today in India was firm, tracking positive global cues. On MCX, gold futures rose 0.2% to ₹48,075 per 10 gram, extending gains to the third day. Silver rates futures rose 0.5% to ₹64,638 per kg. On Friday, gold had jumped 0.8% in India while silver had risen 0.3%. In global markets, gold was near two-month high today, extending Friday's strong gains.
Spot gold today in global markets rose 0.1% to $1,817.65 per ounce. Among other precious metals, spot silver rose 0.3% to $24.25 per ounce. Gold drew support from a retreat in US dollar from a more than one-year peak hit on Friday. A softer greenback lifts bullion's appeal by decreasing its cost to buyers holding other currencies.
Gold has rallied despite a better-than-expected US payrolls report that suggested economic activity was regaining momentum early in the fourth quarter.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said gold is trading higher after a strong gain in the previous session. “Gold traded higher supported by a drop in US bond yields as Fed decided to take a gradual approach on monetary tightening. Also supporting price is inflation concerns. However, weighing on price is an upbeat US jobs report, continuing strength in equity markets, and ETF outflows. Gold has rallied sharply in the last few sessions amid lack of any aggressive move by the Fed but may struggle to build on the gains amid improved risk sentiment," he said.
Easy monetary policy to spur economic growth during the COVID-19 pandemic have propelled gold prices to new highs over the last two years, as near-zero interest rates cut the opportunity cost of holding non-yielding bullion.
Domestic brokerage Geojit says gold prices likely to edge higher as long as the support of $1815 remain undisturbed. A direct drop below $1750 is a weak signal, it added.
For silver, “a direct break of $25 is needed to continue rallies. Else, there are chances of corrective selling pressure," Geojit said.
Gold traders will be looking at a reading on US inflation due later this week. Physical gold demand in large consumer, India, jumped during the festival season last week.
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