Gold and silver rates inch higher in domestic market on firm global cues

Prices of gold and silver opened higher in Mumbai’s spot market on Tuesday, November 15 amid positive cues in the global market, analysts said.

The opening price for 999 purity gold was Rs 52,877 per 10 grams, up Rs 447 from Monday’s closing price of Rs 52,430, while that of 999 purity silver was Rs 62,467 per kg, up Rs 844 from Rs 61,583, the data available on India Bullion and Jewellers Association’s (IBJA) website showed.

On the Multi Commodity Exchange of India (MCX), the gold contract for December delivery was trading at Rs 52,964.00 per 10 grams, up Rs 246.00 (0.47 per cent) at 1:59 pm while the silver contract for December delivery was at Rs 62,795.00, up Rs 325.00 (0.52 per cent).

In the global market, spot gold was up 0.5 per cent at $1,779.94 per ounce, as of 0745 GMT, hitting its highest since August 17. US gold futures gained 0.4 per cent to $1,783.50 per ounce, as per Reuters data.

Commenting on the yellow metal, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services, said, “Gold hovered near a three-month high, as a top US central bank official’s comment raised hopes that the Federal Reserve would adopt a less aggressive approach on rate hikes, while a stronger dollar kept gains in check. Dollar index is trading steady, after a slight rebound seen in yesterday’s session, marked around 107 levels, while US 10Y Yields is hovering around its Sep ’22 lows.”

“Comments from officials is triggering volatility in the market, as over the weekend, Fed official Walker mentioned that slowing pace of rate hike should not be taken as a sign of softening. Fed vice chair Brainard mentioned that the Fed has still more work to do, but they will soon likely slow its interest rate hikes. Traders now see an 80 per cent probability of a 50 bps increase at the US central bank’s December meeting, with only a 20 per cent likelihood of a 75 bps rise. After the US, we also witnessed India’s inflation number showing signs of ease off as it was reported at 6.77 per cent v/s 7.41 per cent prev month. Focus today will be on the EU GDP and US PPI data. Broader trend on COMEX could be in the range of $1,740-1,785 and on domestic front prices could hover in the range of Rs 52,300-53,100 could be expected,” he noted.