13 Jan , 2022 By : monika singh
NEW DELHI: Gold prices were trading flat on Thursday, holding near its weekly highs hit in the previous session. The US dollar and Treasury yields retreated after inflation data came in line with expectations.
The consumer price index increased 0.5 per cent last month, just above the 0.4 per cent expectation, the US Labor Department said on Wednesday.
Gold futures on MCX dipped merely 0.01 per cent or Rs 5 at Rs 47803 per 10 grams. Silver futures were marginally up by 0.06 per cent or Rs 36 at Rs 61,891 per kg.
Gold prices traded steady on Thursday as the yellow metal was supported by an inflation hedge as the US inflation rose to 7 per cent, in line with expectations. The US 10-year Treasury yields fell, boosting buying in gold.
"At the current juncture, the momentum indicators are showing a bullish trend in intraday and daily charts. The trend may continue and gain strength," said Ravi Singh, Vice President and Head of Research.
Gold is considered a hedge against higher inflation, but the metal is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion.
In the spot market, the highest purity gold was sold at Rs 47,943 per 10 grams. Silver was priced at Rs 60,831 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained under Rs 48,000 for more than a week, whereas silver has gained about Rs 1,000 in the last three sessions.
Trading strategy
"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,810 and resistance at $1,833 per ounce. MCX Gold February support lies at Rs 47,500 and resistance at Rs 48,200 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was flat at $1,824.55 per ounce by 0109 GMT. US gold futures were down 0.2 per cent to $1,824.00.
Spot silver was up 0.1 per cent at $23.14 an ounce, platinum climbed 0.1 per cent to $978.09, and palladium shed 0.2 per cent to $1,906.48.
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