Gold rates in India were slightly higher today with similar price volatility in global markets, while silver prices jumped. On MCX, gold futures rose 0.17% to Re 1 48,006 per 10 grams, while silver rates jumped 1%. 61,494 per 10 grams.
Gold rose in global markets today but gains were limited amid a strong US dollar. Spot gold rose 0.2% to $1,810.38 an ounce. The dollar index, which measures the greenback against a basket of other major currencies, was higher at 95.580.
“Payroll data showed that 467000 jobs were added last month which may help the central bank to raise rates. This roller coaster data shows that the bulls are somewhere in control of these levels but are helpless around the $1815 and $1817 levels, technically gold taking the $1790 support. “A move above $1817 can be used for buying targets at $1822 and $1826,” said Vidit Garg, Director, MyGoldKart.
Gold is considered a hedge against inflation and geopolitical risks, yet a hike in rates will increase the opportunity cost of holding non-yielding bullion. Traders will take further cues from this week’s US inflation data, as investors prepare for more volatility in the asset. A jump in US government bond yields has led to volatility in financial assets.
The labor market remains strong, with a jump of 467,000 jobs in non-farm payrolls last month, US data released last week showed. US inflation data is due to be released on Thursday.
Among other precious metals, silver rose 0.9% to $22.67 an ounce, while platinum rose 0.1% to $1,025.
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