The Labor Department's employment status report for September will be carefully watched by the markets this Friday.
Digital Desk: Following positive global cues, gold and silver prices increased today in Indian markets. Gold futures on the MCX were up 0.4% to a price per 10 grams that was more than a month high. Futures for silver increased 1.2% to 61,525 per kilogram. In global markets, gold's recovery has resumed today, helped by a decline in US Treasury yields, but gains have been restrained. Gold's spot price increased 0.2% to $1,719.19 per ounce. The US dollar's stability also benefited the precious metal. Since gold doesn't pay interest, lower yields reduce the opportunity cost of owning it. However, spot silver decreased 0.3% to $20.64 for an ounce.
Gold traders will be eying US nonfarm payroll data due on Friday.
The Labor Department's employment status report for September will be carefully watched by the markets this Friday.
However, rising oil costs around the world and geopolitical unrest in Ukraine and Russia are encouraging investors to acquire precious metals as a safe haven. Support for gold is located at $1712 while resistance is found at $1740 and 1751.
Support and resistance levels for silver are $20.48 and $20.20, respectively. Support for gold in rupees is between 51,420 and 51,240, while resistance is between 51,880 and 52,050. Silver's support and resistance levels are 60,150–59,440 and 61,480–62,110, respectively, according to Rahul Kalantri, VP of Commodities at Mehta Equities Ltd.
The US economy appeared to have underlying strength on Wednesday despite higher interest rates, according to newly released data. Private firms increased hiring last month, according to the ADP National Employment Report, while the non-manufacturing PMI rating from the Institute for Supply Management (ISM) came in slightly above forecasts.
On Wednesday, the largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, saw an increase in its holdings of 0.18% to 946.34 tonnes.
Investors should exercise caution before this week's US jobs report since better-than-expected figures may give the Fed greater leeway to continue tightening, which would raise bond yields. In a letter, Kotak Securities predicted that gold prices will fluctuate sideways and upward.
Brent crude increased by 20 cents a barrel to $93.57 in London, among other commodities. It increased by $1.57 the day before when the OPEC+ alliance decided to implement the largest output cut since 2020. Following Russia's war on Ukraine in February, the price of oil soared to over $110 per barrel but has since dropped.
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