Gold Rate Today: Yellow metal rises amid weak dollar and growing tensions in Middle East

Gold prices rose marginally on Friday as a broadly weaker US dollar and growing tensions in the Middle East lifted bullion‘s appeal.

The April gold futures were trading at Rs 62,062 per 10 grams on the MCX at 10:33 am and were up by Rs 85 or 0.14% from Thursday’s closing price. Meanwhile, the March Silver futures were trading at Rs 70,228 per kg and were lower by Rs 41 or 0.06% around this time.

Spot gold was up 0.1% at $2,025.7 per ounce, as of 0411 GMT, and has gained 0.7% so far in the week. U.S. gold futures edged 0.2% higher to $2,035.3 per ounce.

“Upbeat U.S. economic data bolstered the dollar index, leading to selling pressure in precious metals. However, geopolitical tensions in the Middle East are providing some support to prices at lower levels. Expectations are for gold and silver prices to remain volatile in today’s session,” said Rahul Kalantri, VP of Commodities, Mehta Equities.

Tension mounted in the Middle East as Yemen’s Iran-aligned Houthis claimed responsibility for an attack on a UK-owned cargo ship, and they targeted Israel’s port and resort city of Eilat with ballistic missiles and drones.

Meanwhile, the dollar index was heading for its first weekly dip in nearly two months, making the greenback-priced bullion less expensive to overseas buyers.However, recent data showing higher-than-expected U.S. consumer and producer prices has dashed hopes for an early interest rate cut from the Federal Reserve and kept bullion’s gains in check.”We expect gold to trade lower towards 61700 levels, a break of which could prompt the price to move lower towards 61550 levels,” said Saish Sandeep Sawant Dessai, Analyst, Angel One.

Markets are currently pricing in a 62% chance of a Fed rate cut in June, according to the CME Fed Watch Tool. Lower interest rates boost the appeal of holding non-yielding bullion.

“Gold finds support at $2012-1998 and resistance at $2039-2051, while silver’s support lies at $22.70-21.55 with resistance at $23.08-23.22,” said Rahul Kalantri.

In terms of the INR, gold has support at Rs61,780-61,610 and resistance at Rs62,190 and Rs62,340, while silver finds support at Rs69,540-69,080 and resistance at Rs70,850 and Rs71,480, Kalantri said.

Spot platinum was down 0.4% at $898.05 per ounce and palladium fell 0.2% to $965.69. Silver gained 0.2% to $22.78 per ounce, but was down 2.6% so far in the week.

(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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