Gold Rates rises, and silver reaches Rs 68,000

Gold Rates have risen and silver reaches a whooping high 

Gold rates were steady on Friday as investors waited for US inflation data due later in the day after signals from Federal Reserve officials this week on interest rate hikes. After choppy trading, the yellow metal seems to have modest gains in domestic markets. Gold Rates rises, and silver reaches Rs 68,000

Fewer Americans filed new claims for unemployment benefits, according to data, as the labour market is recovering from the pandemic amid a reopening economy.  Investors are now focusing on US producer price data on Friday for further clues to predict rising inflation.

The dollar index saw a slight change against a basket of currencies at 91.839, holding below a two-month high of 92.408 touched last week. Some investors view the precious metals as a barrier against higher inflation that might follow stimulus measures.

Despite the opening up of the economy, the demand for physical gold in the world’s second-largest bullion market remains slug even after lifting the shutters. Purchases have increased recently, but the dealers anticipate a significant fall in overall sales. (ETF) Exchange-Traded Fund outflows also show weaker investor interest.

Gold futures on MCX were slightly up 0.07 per cent or ₹ 31 at ₹ 46,901 per 10 grams. Silver futures gained 0.26 per cent or ₹ 177 to ₹ 67,910 per kg.

“COMEX traded marginally higher at $1779/oz after a 0.4 per cent decline yesterday. Gold is range-bound amid mixed US economic data and mixed Fed comments, which has caused uncertainty about Fed’s monetary policy stance,” said Mr Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

ETF outflows show weaker investor interests while the price is rising inflation concerns. Gold may remain turbulent along with the US dollar, and general bias remains weak owing to Fed’s monetary tightening outlook.


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