Gold prices today surge to new high, rise above key level

Market


Gold rates in India rose to new high today, tracking firm global rates. In domestic futures market, MCX gold rose 0.4% to 57050 per 10 gram while silver jumped 0.5% to 68301 per kg.  In global markets, supported by a weaker US dollar, spot gold rose 0.2% to $1,935.69 per ounce. Investors await US fourth quarter GDP growth estimates due later this week. Among other precious metals, spot silver gained 0.4% to $23.54 per ounce.

The US dollar has softened in recent weeks on rising bets of lower rate hikes. A weaker greenback makes dollar-priced bullion more affordable for many buyers.

“COMEX Gold ended Monday’s session on a flat note after falling to as low as $1912/oz. In today’s early session Comex gold is trading firm near $1936/oz gaining by around 0.40%. Yesterday the yellow metal witnessed a wild move as price initially corrected towards $1912/oz on strong US Dollar and rising bond yields. However, the dollar pared the gains that supported gold to reclaim $1928/oz and closed on a flattish note,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

“The US Dollar initially slipped against the Euro as the single currency took support from European Central Bank (ECB) officials’ comments signaling additional jumbo interest rate rises in Europe. Traders will focus on a slew of economic data from the US this week before the FOMC meeting next week. PMIs from the Euro area, UK and US will be the focus today followed by the U.S. fourth-quarter GDP report on Thursday,” he added.

 

 

 


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