Gold prices in India continued to struggle for the sixth day in a row, moving in a very narrow range. On the MCX, gold futures are up 0.15% to ₹49,275 per 10 grams, while silver futures rose 0.5% to ₹72 357 per kg. On international markets, gold prices were stable at around $ 1,900 an ounce, helped by a weaker dollar and US bond yields. Gold has struggled in a narrow range after hitting a 5-month high ₹49,750 last week. In August last year, the price of the precious metal reached a record high. ₹56 200.
MCX Gold Faces Key Resistance At ₹49880, while major support is at ₹48400, analysts say.
Investors ignored data that showed US inflation jumped 5% year-over-year, the biggest annual gain since August 2008. They hope that the rise in US inflation is likely to be temporary and the Fed is likely to maintain its dovish stance.
Among other precious metals, silver rose 0.5% to $ 28.10 an ounce, while platinum remained unchanged at $ 1,151.47.
“If gold overcomes the tough $ 1,925 resistance, it will strengthen the positive momentum. The unexpected drop below $ 1,845 is likely to nullify further bullish expectations and drive prices down, ”said Harish V., head of commodities research at Geojit Financial Services.
The yields on benchmark US bonds have declined, which has increased the attractiveness of interest-free gold. Gold traders are now eagerly awaiting the Federal Reserve meeting next week, which will provide guidance on the course of monetary policy.
On Thursday, the European Central Bank raised its growth and inflation forecasts, but promised to provide a steady stream of stimulus.
“Gold has moved in price by $ 1,900 an ounce after a brief correction indicating underlying strength. However, we expect to see volatile trading as market participants continue to assess the inflationary situation ahead of the Fed meeting next week. Among other precious metals, silver remained stable at $ 27.96 an ounce. ounce, while platinum fell 0.1% to $ 1,150, “Kotak Securities said in a statement.
On the other hand, analysts say the gold price is being affected by weaker consumer demand in India, but the situation could improve after some relaxation of virus-related restrictions. Gold is also influenced by the efforts of the United States and China to improve relations, they said.
“Trends in the US dollar, bond yields and the stock market may continue to affect gold and silver prices, and the focus will be on economic data from major economies, central bank commentary and developments in the virus situation,” the brokerage added. (With the participation of the agency)
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