Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday tracking a positive trend in the international spot prices.
At 11:10 am, gold futures for August delivery rose 0.13 percent to Rs 47,950 per 10 grams as against the previous close of Rs 47,889 and the opening price of Rs 47,982 on the MCX. Silver futures traded 0.03 percent higher at Rs 69,100 per kg. The prices opened at Rs 69,096 as compared to the previous close of Rs 69,081 per kg.
“Gold is trading on a sideways to moderately bullish trend along with the support around 15-SMA of hourly chart placed near Rs 47,925. The major resistance is at Rs 48,075. The investors will keep an eye on most important PPI data set to release in the evening along with Fed chairman Powell’s testifies,” said Kshitij Purohit, Lead Currency & Commodities, CapitalVia Global Research.
International gold prices rose as the US dollar inched lower after data showed the biggest jump in US inflation in 13 years. The US consumer price index jumped 0.9 percent in June, the Labor Department said on Tuesday. That was above market expectations and the largest gain since June 2008.
But US bond yields and the dollar were lower in Asian trade after jumping a day earlier on the inflation data.
Spot gold rose 0.11 percent to $1,809.38 per ounce.
“Amidst higher-than-expected US CPI data gold prices are holding bullish sentiments and manage to trade above $1,800 an ounce level. Rising prices in the current scenario is a double-edged sword, it can support gold prices as the inflation hedge with a caveat which could force Fed to tighten the interest rates sooner than expected,” said Sandeep matta, founder, TradeIT Investment Advisor.
“Gold on MCX is also trading in a tight range where skilled traders are making money on both sides. Sideways consolidation is likely to continue until it sustains above Rs 48,000 levels,” Matta added.
Here are gold rates across major cities:
Here are silver rates across major cities:
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