Gold rates today struggle to move higher, down ₹8,000 from record highs

Gold rates in India today struggled to move higher amid flat global cues. On MCX, gold futures were up 0.14% to 48,126 per 10 gram while silver edged 0.07% lower at 61,785 per kg. 

In global markets, gold inched higher despite a risk-on rally in equity markets. A dip in US bond yields from their recent highs supported the precious metal, reducing the opportunity cost. Spot gold rose 0.1% to $1,785.48 per ounce as US benchmark 10-year and 30-year Treasury yields pulled back from their one-week highs hit on Tuesday.

If gold sustains and closes above $1,798 then bears may have tough time in coming days while move below $1785 will bring it down till $1,767, says Vidit Garg, director at MyGoldKart.

Among other precious metals, spot silver rose 0.2% to $22.51 an ounce while Platinum gained 0.3% to $954.26.

“Spot silver is showing resistance around $22.60. If bulls needs to come back then they have to get closing above $22.65,” he added.

Gold traders will be looking ahead to key US inflation data that could give further clues into Fed’s tapering stance. The U.S. Consumer Price Index (CPI) report is due on Friday.

Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of non-interest bearing gold. (With Agency Inputs)

 

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