Gold Price In India: Gold futures traded marginally higher on Wednesday, September 29, as the yellow metal held on to global cues and moved towards testing the Rs 46,000 level. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading higher by Rs 17 - or 0.04 per cent - at Rs 45,870, compared to their previous close of Rs 45,853. Silver futures due for a December 3 delivery were last down 0.22 per cent at Rs 60,330 against a previous close of Rs 60,464.
Gold in international markets:
Gold prices edged higher today as U.S. Treasury yields slightly eased, but held near its seven-week trough on rising expectations of a quicker-than-expected U.S. interest rate hike that drove the dollar to a multi-month high, according to news agency Reuters.
Domestic spot gold opened at ₹ 46,089 per 10 grams on Wednesday, and silver at ₹ 59,996 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Foreign exchange rates:
On Wednesday, the rupee declined 13 paise to 74.19 against the dollar in an early trade session. Gold gives a safe haven appeal for investors as it is a hedge against inflation. If the rupee weakens against the greenback, gold prices could appreciate in rupee terms.
Yesterday, the dollar index hit more than one-month high, while the benchmark U.S. 10-year Treasury yields registered its highest level in more than three months, according to Reuters.
Mr Amit Pabari, MC, CR Forex:
''The deepening concerns over persistent ‘Energiflation', rising US benchmark yield, and uncertainty over debt ceiling helped the US Dollar index to jump above 93.80- the highest level since Nov-2020 levels. These factors are weighing on the EM currencies and along with that rupee too depreciated.
The hawkish comments from the Fed members and rising crude oil prices continued to support the US 10 year yield to jump above 1.55 per cent and hence real rates too rose to the highest level since the June Fed meeting.
It would be interesting to watch how things for the USDINR pair unfold in the near term. The pair has given the breakout from its immediate resistance levels and is now expected to steadily move higher towards the 74.50 mark. If that is taken out then July high near 75 could be targeted.''
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
''COMEX gold trades little changed near $1736/oz after a 0.8 per cent decline yesterday when it tested 7-week low. Weighing on gold price is firmness in US dollar, increased expectations of Fed's monetary tightening and continuing ETF outflows.
However, supporting prices are increasing challenges to the global economy amid rising inflationary pressure, concerns about the health of the Chinese economy and mixed economic data from major economies and political wrangling over US debt ceiling limit.
Gold has tested fresh lows indicating weaker sentiment however global risk aversion may keep a floor to prices.''