Gold rises today as global rates hit one-month high, silver prices jump

Market


Gold prices edged higher in Indian markets amid firm global rates that hit fresh one-month high today. On MCX, gold futures rose 0.27% to 48,198 per 10 gram while silver jumped 0.7% to 62,721 per kg. A stronger rupee limited gains for gold in domestic market. 

In global markets, gold climbed 0.3% to at $1,816.70 – its highest since November 22. A pullback in US dollar and concerns over the spread of the Omicron coronavirus variant has led to the current leg of year-end rally in the precious metal, according to analysts. 

“Gold inched higher as market participants assess the impact of the Omicron variant on the economy. Gold could remain supported at lower levels after China reported its highest daily rise in local COVID-19 cases in 21 months as infections more than doubled in the northwestern city of Xian, its latest hotspot. Broader range on COMEX could be between $1780- 1825 and on the domestic front prices could hover in the range of 48,000 – 48,385,” said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services.

Among other precious metals, silver rose 0.6% to $23.18 an ounce while platinum gained 0.4% to $973.96.

Continuing its gain for the ninth trading session in a row, the rupee surged 34 paise to close at 74.66 against the US dollar on Tuesday, tracking positive domestic equities amid a rising appetite for high-risk assets. The dollar index was today down 0.09% to 95.995 against a basket of currencies.

Despite the year-end rally in gold, the precious metal is heading for its first annual loss in three years as central banks start to dial back pandemic-era stimulus to contain inflation. The S&P 500 notched its 69th record close of 2021 on Monday, suggesting investors remain relatively sanguine about risks from omicron. (With Agency Inputs)

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