In Indian markets today, gold and silver rose, tracking positive global cues. Gold futures on the MCX were up 0.4% to a one-month high of 51,848 per 10 gramme. Silver futures rose 1.2% to 61,525 per kilogramme. In international markets, gold continued to rise today, aided by a drop in US Treasury yields, but gains were limited.
The spot price of gold was up 0.2% at $1,719.19 per ounce. A stable US dollar aided the precious metal as well. Lower yields reduce the opportunity cost of holding gold, which does not pay interest. Spot silver, on the other hand, fell 0.3% to $20.64 per ounce.
Gold traders will be looking forward to Friday’s nonfarm payrolls data from the United States. “The markets will also be closely watching the Labor Department’s September employment situation report on Friday.” However, rising global oil prices and geopolitical tensions between Russia and Ukraine are encouraging investors to buy precious metals as a safe haven.
Gold has a support level of $1712-1698 and a resistance level of $1740-1751. Silver has a support level of $20.48-20.20 and a resistance level of $20.95-21.10. In rupee terms, gold has a support range of 51,420-51,240, with resistance at 51,880 and 52,050. Silver has a support level of 60,150-59,440 and a resistance level of 61,480-62,110,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Despite rising interest rates, US data released on Wednesday suggested underlying economic strength.