New Delhi: Gold prices once again rose on Monday after witnessing week of lows against the sharp gain in the previous session. On MCX, gold was flat at ₹46961 per 10 gram while silver dipped to ₹63,160 per kg. In the previous session, gold had risen about ₹600 per 10 gram while silver had jumped ₹1,350 per kg. Gold has been on a upward trend after hitting a four-month low of ₹45,800 last week after better-than-expected US data led to a selloff on bets the Federal Reserve may start paring back massive monetary stimulus soon.
In global markets, gold rates were near one-week high today after data showed that US consumer sentiment fell in early August to the lowest in nearly a decade. Spot gold was flat at $1,779.51 per ounce. The data weighed on the dollar index, which fell to a one-week low on Friday, making gold cheaper for holders of other currencies.
Among other precious metals, silver fell 0.2% to $23.69 per ounce while platinum dropped 0.7% to $1,019.86.
“Though the broad outlook seems to be bearish, there are chances of recovery upticks in gold. However, it required to break $1815 to continue such moves for the day,” says domestic brokerage in a note.
“For silver, consistent trades above $23.90 is required to lift prices higher. Else, there are chances of range bound trading with mild negative bias,” the brokerage added.
Data released on Friday showed a sharp drop in US consumer sentiment, allaying some concerns about early tapering by the Federal Reserve policymakers. Gold is also considered a hedge against inflation, likely to result from widespread stimulus.
However, ETF activity remained weak, capping gains for gold. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 1,021.79 tonnes on Friday from 1,023.54 on Thursday.
On gold traders radar will be a figures for US retail sales are due on Tuesday as well as minutes of the Fed’s latest meeting, for more clues about the likely timeline for tapering. Currently, the Fed holding its benchmark interest rate near zero and purchasing $120 billion of U.S. Treasury and mortgage-backed securities as part of a stimulus program launched last year to support the economy.