Gold Prices Jump Today But Silver Rates Drop

In global markets, gold prices today edged higher supported by a softer dollar and weakness in the equities market. Overnight, the US Federal Reserve hiked interest rates by 25 basis points, as widely expected, but what took markets by surprise was the US central bank’s commitment to retain the core of its plan to tighten monetary policy, despite rising uncertainty about global economic growth. Spot gold prices rose 0.5% to $1,249.46 per ounce.

Gold prices jumped today in domestic markets, tracking higher global rates. Fresh buying by local jewellers also supported gold prices. Gold rates today rose by Rs 150 to Rs 32,000 per 10 gm.

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Silver prices, on the other hand, fell by Rs 130 to close at Rs 37,750 per kg due to muted demand from coin makers and industrial units. In Delhi, gold of 99.9% and 99.5% purities moved higher by Rs 150 each to Rs 32,000 and Rs 31,850 per 10 gm, respectively. Gold prices had fallen Rs 210 on Wednesday.

Silver ready, prices, traded lower by Rs 130 to Rs 37,750 per kg, while weekly-based delivery was down by Rs 175 to Rs 37,258 per kg. Silver coins held steady at Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

“There is some safe-haven buying supporting gold prices today,” said Renisha Chainani, head of commodity and currency research at Monarch Networth Capital. “Overall there is risk-off sentiment in the market.”

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The dollar, which measures the greenback against a basket of six major currencies, was down 0.5%. Gold has support at $1,230-$1,235, Reuters quoted an analyst as saying.

Back in Indian markets, gold exchange-traded funds or ETFs saw a net inflow of Rs 10 crore after witnessing a pull-out in the past several months.

Gold is sensitive to higher interest rates because they boost the dollar, making bullion more expensive for buyers using other currencies.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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