Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday following a positive trend in the international spot prices as the US consumer prices increased more than expected in April, analysts said.
At 12:45 pm, gold futures for August delivery rose 0.37 percent to Rs 49,332 per 10 grams as against the previous close of Rs 49,150 and opening price of Rs 49,193 on the MCX. Silver futures traded 0.42 percent higher at Rs 71,910 per kg. The prices opened at Rs 72,000 as compared to the previous close of Rs 71,611 per kg.
“The gold prices have breached key level of $1,900 on inflation concerns. The refusal of the Federal Reserve to reduce the pace of their bond-buying program or move higher on rates is also supportive of gold. The speculative money is also back in Gold as Bitcoin is headed toward its worst month since 2011,” said Ajay Kedia, director, Kedia Advisory.
International gold prices traded higher on lower US Treasury yields after the release of China’s key economic data and a surge in US inflation.
The Chinese Manufacturing Purchasing Managers Index (PMI) was 51 and the non-manufacturing PMI was 55 in May, both remaining above the 50-mark indicating growth.
Meanwhile, US consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve’s 2 percent target and posting its largest annual gain since 1992, said a Reuters report. Gold is considered an inflation hedge.
Gold futures rose 0.15 percent to $1,908.25.
The dollar index inched up on Monday and the Benchmark US 10-year Treasury yield fell to 1.593 percent.
“Gold is trading above the important level of $1,900. The general bias for the yellow metal remains positive and it may test $1,930-1,935 level soon,” Kedia said.
“On MCX, gold may face resistance at Rs 49,600 and support is seen at Rs 48,950. Support for silver is seen at Rs 71,000 and resistance at Rs 73,200,” he added.
Here are gold rates across major cities:
Here are silver rates across major cities:
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