Gold rates today edge higher to near all-time highs, silver jumps


Gold edged higher in Indian markets today and hovered near all-time highs, tracking an uptick in international prices. On MCX, bullion futures were up 0.15% to 56,745 per 10 gram, after hitting new peak of 56,850 on Friday. Silver futures rose 0.6% to 68,970 per kg. 

In global markets, gold edged up 0.3% to $1,932.12 per ounce, supported by a softer dollar. Expectations of a downshift in interest rate hikes by the Federal Reserve also boosted the precious metal’s appeal. Among other precious metals, spot silver gained 0.4% to $24.04 per ounce.

“COMEX gold prices rose for the fifth week in a row, to a fresh nine month high of $1,939 per troy ounce in the previous week, amid a softer dollar, poor corporate earnings and heightened layoffs, rising concerns of a recession,” said Ravindra V. Rao, VP-Head Commodity Research, Kotak Securities Ltd.

“The yellow metal has been witnessing a one-sided rally since early November, after touching a 28-month low of $1,618 per troy ounce, on signs the Federal Reserve was turning less hawkish, spurring decline in the greenback and US treasury yields. Prospects of a looming slowdown in US, cooling inflation and Labour market coupled with a Fed pivot might continue to bolster gold prices,” he added.

In India, domestic prices have rallied nearly 7,000 in past four months, tracking a rebound in international rates. 

The Federal Reserve’s two-day meeting concludes on February 1, with most market participants expecting a 25-basis point hike. Lower rates reduce the opportunity cost of holding zero-yield bullion. On the other hand, a softer US dollar makes greenback-priced bullion attractive for buyers holding other currencies.

Traders are also monitoring the covid situation in top gold consumer China.

According to a Reuters report, dealers in India last week offered a discount of up to $24 an ounce over official domestic prices, lower than $35 in the previous week. India imports most of its gold requirement and domestic prices include import duty and 3% GST. 

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