Gold rate and silver rate were trading higher in India on Thursday, on the back of positive global cues. Gold December futures were trading at Rs 51,915 per 10 grams on the Multi Commodity Exchange, up Rs 269 or 0.5% from the previous close of Rs 51,646. On the MCX, silver December futures were trading at Rs 61,490 a kg, up Rs 723 or 1.2%. According to Reuters, yellow metal prices increased globally as Treasury yields declined, though gains were constrained because stronger U.S. economic data increased confidence the Federal Reserve will maintain its hawkish stance.
Commodity and currency analyst Bhavik Patel, Tradebulls Securities said, Gold prices increased after last Friday’s retracement in the US dollar and Treasury yields as a result of lower than anticipated PMI data. Although yesterday’s private payroll numbers were stronger than anticipated, the trend is still optimistic, which has dulled some of the lusters on precious metals. The Labor Department’s Friday employment situation report for September is arguably the most significant U.S. data point of the week, if not the month. Due to greater inflation caused by higher oil prices, OPEC’s plan to reduce oil output to 2 million bpd will also help gold prices.
Sriram Iyer a senior research analyst at Reliance Securities told that Gold and silver prices dropped following Wednesday’s recovery bounce in the U.S. Dollar and benchmark Treasury yields. In anticipation of a U.S. Federal Reserve policy shift toward a more gradual rate hike schedule, prices had risen the previous session.
With regard to the future, despite a higher dollar, gold and silver have started this Thursday’s trade stronger. Data on non-farm payrolls in the United States, which are due on Friday, may provide more details on the Fed’s tightening of policy. As a result, the range for the day on the MCX for gold is Rs 51,440 to Rs 51,770, he added.
