0

0

0

0

0

0

0

0

0

This article is more than 2 month old.

Gold Price Today: Yellow metal futures slide below Rs 47,850; good time to take positions?

Mini

Gold futures edged lower amid a rising dollar, which makes bullion less appealing for holders of other currencies. Weakness in domestic equities maintained the safe-haven appeal of precious metals.

Gold Price Today: Yellow metal futures slide below Rs 47,850; good time to take positions?
Domestic gold and silver prices edged lower on Tuesday amid a rising dollar, which dents the demand for bullion among holders of other currencies. However, weakness in domestic equities maintained the safe-haven appeal of precious metals.
At 12:31 pm, MCX gold futures for a delivery on December 3 quoted at Rs 47,832 per 10 grams, down by Rs 71 or 0.2 percent compared with their previous close.
Silver followed suit. MCX silver futures (December 3) were down by Rs 165 or 0.3 percent at Rs 64,626 per kilogram.
ALSO READ
Globally, gold and silver rates moved lower amid a strengthening dollar. Spot gold was last seen trading 0.2 percent lower at $1,789.6 per ounce. US gold futures were also down 0.2 percent, at $1,791.5 per ounce.
Spot silver was down 0.2 percent at $24 an ounce.
Investors eyed a pivotal US central bank policy meeting amid growing concerns over a sustained bout of inflation. The Federal Reserve’s two-day policy meeting concludes on Wednesday.
Price and wage increases running at multi-decade highs may challenge the Fed as it tries to maintain a balance between containing inflation and giving the economy as much time as possible to restore the jobs lost since the pandemic.
Gold is often considered a hedge against inflation, though reduced stimulus and interest rate hikes push government bond yields up, denting the bullion’s appeal.
Back home, the rupee edged higher to 74.79 against the US dollar.  The dollar index - which measures the greenback against six other currencies - rose as much as 0.1 percent on Tuesday.
On Dalal Street, benchmark indices Sensex and Nifty50 gave up initial gains in afternoon deals, as losses in IT, pharma, healthcare and metal shares offset gains in financial and auto stocks. Typically, gains in equities dent the safe-haven appeal of bullion and vice versa. Catch latest market updates here
Is it a good time to take positions now?
If the Fed starts to taper its massive stimulus from this month, gains in precious metals could be restricted, but a delay could push them higher, said Manoj Kumar Jain, Director-Head of Commodity Research at Prithvi Finmart.
He expects both the metals to remain volatile ahead of the Federal Reserve meeting.
He sees support for MCX gold futures at Rs 47,750-47,580 levels, and resistance at Rs 48,055-48,240. For silver, he sees support at Rs 64,400-64,100 and resistance at Rs 65,220-65,500.
We suggest buying gold on dips around with a stop loss of for that target of., he said.
Jain suggests buying gold on dips to around Rs 47,750 for a target of Rs 48,100 with a stop loss at Rs 47,580.
next story