Business News/ Markets / Commodities/  Gold prices today rise, jump 2,000 per 10 this month; silver rates higher

Gold and silver prices today edged higher in Indian markets, tracking positive global cues. On MCX, June gold futures were 0.25% higher at 48,662 per 10 gram while silver rates rose 0.6% to 72,033 per kg. Gold rates in India have jumped about 2,000 so far this month. MCX gold has support at 48,200 and resistance at 49,100, say analysts. On the other hand, MCX silver has support at 70,080 and support at 74,200.

In international markets, gold rates were steady above key $1,900-level today after US consumer price data boosted the precious metal's shine as an inflation hedge. Spot gold advanced 0.2% to $1,907 an ounce to extend its gains this month by nearly 8%.

"Positive outlook for gold remains intact as long as prices hold the support of $1875. However, immediate resistances are seen at $1925 followed by 1970 levels. A direct drop below $1845 would weaken the sentiment, but major downside reversal point is seen at $1810," domestic brokerage Geojit said in a note.

Data released last week showed US consumer prices surged in April, posting its largest annual gain since 1992. Some US Federal Reserve officials however have attributed the recent price pressures to the reopening of the economy amid pent-up demand, and said it may be temporary as supply glitches abate.

The holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.1% to 1,043.21 tonnes on Friday from 1,044.08 tonnes on Thursday.

Among other precious metals, silver gained 0.2% to $27.94 while platinum rose 0.5% to $1,182.74.

"Technically, breaking the $30 resistance is required for silver continue the sentiment. Anyhow, important support is placed at $25.60 a break of weak could trigger further weakness in the counter," says Geojit.

Gold traders will be looking forward to the release of key US jobs data due later this week that will offer clues on the economic recovery. The nonfarm payrolls report is scheduled for release on Friday.

Gold glitters this month

Gold is among the best performing metals this month in global markets, erasing 2021 losses, amid signs of rising inflation and prospects of uneven economic recovery due to the resurgence in coronavirus cases in some countries.

Investor interest has also returned as holdings in bullion-backed exchange-traded funds have climbed in May following three straight months of declines. (With Agency Inputs)

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Updated: 31 May 2021, 09:34 AM IST
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