12 Jan , 2022 By : monika singh
NEW DELHI: Gold prices were trading flat on Wednesday as traders focused on US inflation data for rate cues after less hawkish comments from the Fed Chair, which fuelled a bullion rally last session.
Fed Chairman Jerome Powell said the central bank was determined to ensure that high inflation did not become "entrenched" and that far from diminishing job growth, a turn to higher policy interest rates.
Gold futures on MCX were down 0.03 per cent or Rs 15 at Rs 47,674 per 10 grams. Silver futures dipped by 0.10 per cent or Rs 63 to Rs 61,040 per kg.
Ravi Singh, Vice President and Head of Research, ShareIndia expects gold prices to remain volatile ahead of the US inflation data. "The expectation of an early rate hike may keep a check on the gold rally," he added.
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, highest purity gold was sold at Rs 47,705 per 10 grams while silver was priced at Rs 60,440 per kg on Tuesday, 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 made a quick recovery in the last two sessions.
"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,800 and resistance at $1,833 per ounce. MCX Gold February support lies at Rs 47,400 and resistance at Rs 48,000 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was little changed at $1,819.51 per ounce by 0135 GMT. US gold futures were up 0.1 per cent at $1,819.80.
Spot silver shed 0.1 per cent to $22.73 an ounce, platinum fell 0.4 per cent to $967.43, and palladium was flat at $1,920.67.