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gold price today: Gold rate today: Yellow metal edges higher, set for 5th consecutive weekly gain, pub-9809009992858082, DIRECT, f08c47fec0942fa0
Gold prices moved higher and look set for fifth consecutive weekly gains as investors bet on the safe haven amid uncertainty over the US Fed Policy.

On Friday, gold futures were up 0.21% or Rs 121 at Rs 56,666 on


Analysts also attributed the rise in gold prices to fresh positions built by participants.

In the international markets, spot gold was at $1,930.59 per ounce and so far this week, prices have risen 0.5%. Meanwhile, US gold futures rose 0.4% to $1,932.40

The dollar index was headed for a second consecutive weekly decline, making bullion cheaper for holders of foreign currencies. The index is currently hovering marginally above 102 levels.

“Gold prices hovered at a nine-month high, rallying in tandem with a sharp drop in stock markets as weak corporate earnings and softer-than-expected economic data raised concerns over a looming economic slowdown,” said Rahul Kalantri, VP-Commodities, Mehta Equities.

We expect gold and silver to remain volatile in today’s session, he added. According to Mehta, gold has support at Rs 56,510-56,380, while resistance is at Rs 56,940 and 57,140.Meanwhile, silver futures are up about Rs 318 on MCX and were last trading at Rs 68,677 on NSE. Silver has support at Rs 68,050-67,520, while resistance is at Rs 68,950-69,580, said Mehta.

Weak economic data in the US also boosted the safe-haven bullion’s appeal. Data on Wednesday showed US retail sales fell by the most in a year in December, while producer prices fell more than expected last month, offering more evidence that inflation was receding.

Most analysts expect the US Federal Reserve to end its tightening cycle after a 25-basis-point hike at each of its next two policy meetings and then likely hold interest rates steady for at least the rest of the year.

With lower rates translating into lesser returns on interest-bearing assets such as government bonds, investors may prefer zero-yield gold.

Market participants will also keep their eyes on the US housing data and comments from Fed officials for further cues.

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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