
The price of precious metals were mixed today in global markets amid choppy global cues. On MCX, gold futures were 0.16% higher at ₹46,900 per 10 gram while silver futures dipped 0.4%. In the previous session, gold had dipped 0.13% while silver had risen 0.4%. In global markets, gold rates were flat today as investors refrained from making big bets ahead of the US jobs report due later today. Spot gold was steady at $1,755.83 per ounce. For this week, it is down 0.3%.
Gold has struggled this week as the dollar index hovered below a one-year high. A stronger dollar makes gold more expensive for other currency holders.
Last month, Fed Chairman Jerome Powell had signalled that the central band could start reducing the monthly asset purchases as soon as November, as long as the September jobs report was "decent."
Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest.
“Gold prices may limit gains on supportive US private payroll data. We expect gold prices to trade sideways to up with COMEX spot gold resistance at $1775 and support at $1750 per ounce. MCX Gold December support lies at Rs. 46700 and resistance at Rs.47100 per 10 gram," said Tapan Patel- Senior Analyst (Commodities), HDFC Securities.
Meanwhile, the Senate voted to temporarily increase the debt ceiling, breaking a prolonged stalemate that had buffeted markets.
Among other precious metals, spot silver fell 0.4% to $22.48 per ounce while platinum rose 0.2% to $981.37 per ounce.
“Commodities may witness choppy trade as market players reassess market risks and position for reopening of Chinese market and US non-farm payrolls data. While markets have stabilized, risk appetite is still shaky amid increasing risks to global economy and this may keep pressure on commodities at large," Kotak Securities said in a note.
(With Agency Inputs)