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Gold futures marginally up below Rs 46,000, silver volatility

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Gold futures were last seen trading higher by Rs 239 or 0.52 per cent at Rs 45,824.

Gold Price in India: Gold futures traded marginally higher on Thursday, September 30 as the yellow metal showed a trend in the global market, while trading below the Rs 46,000 level. On the Multi Commodity Exchange (MCX), gold futures, due for delivery on October 5, were trading higher by Rs 239 or 0.52 per cent at Rs 45,824, as against Rs 45,585 in the previous trade. Silver futures due for delivery on December 3 advanced 0.22 per cent to Rs 58,549 from Rs 58,386 in the previous year.

Gold in International Markets:

Today, the rally in the US dollar halted and the Treasury yield declined slightly, giving rise to gold prices today. Yesterday, the Treasury yield eased but remained near its seven-week curve on expectations of an earliest US interest rate hike.

According to Mumbai-based industry body India Bullion and Jewelers Association (IBJA), domestic spot gold opened on Thursday at ₹45,959 per 10 grams and silver at ₹58,239 per kg – both rates excluding GST.

Foreign exchange rate:

On Thursday, the rupee had declined by 22 paise to close at 74.36 against the dollar in the opening trading session. Gold is a hedge against inflation and inches higher against the weaker greenback. If the rupee depreciates against the US dollar, the gold price rises by the rupee. The US Federal Reserve meeting signaled a hike in interest rates that pushed the dollar to a multi-month high.

Mr Amit Pabri, MC, CR Forex:

The US dollar index strengthened at 94.43 – its highest level in a year – amid rising prospects of higher global inflation due to rise in crude oil, natural gas and coal prices in the US, Europe, the UK and China. Also, an increase in US 10-year bond yields on the tone of hawkish Fed tapering; To fix the real rates and therefore put pressure on the DM and EM FX.

On the domestic front, equity markets are expected to remain cautious ahead of rising global uncertainty. RBI is expected to stay away from the market as they can keep the rupee value in line with other equivalent EM FX.

Ravindra Rao, CMT, EPAT, VP- Commodity Research Head at Kotak Securities:

”COMEX gold trades marginally up near $1732/oz, after losing 0.8 per cent yesterday when it tested 7-week lows. Gold rose today after the US dollar index recently hit a one-year high. Also supporting is mixed economic data, concerns about China, rising inflationary pressures and the US debt limit debate.

However, price-weighted ETF outflows continue to reflect weak investor interest. Also weighing on the price are increasing expectations of the Fed’s monetary tightening. Gold is seeing some relief rally, though it may not be sustained as Fed’s monetary tightening expectations may support the US dollar.

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