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Gold Prices Today: Precious metal to stage relief rally amid dollar weakness; support around Rs 49,700

"Since yesterday gold rebounded sharply; we may see some pullback in today's session but the undertone may change to positive ahead of a festival season in India," said Jigar Trivedi, Senior Research Analyst - Commodity & Currency, Reliance Securities

September 29, 2022 / 09:46 AM IST
Representative image

Representative image

Gold rose about 2% on Wednesday in the international markets as a retreat in the dollar rekindled some of its safe-haven appeal, although prospects of sharp rate hikes kept the non-yielding precious metal near a two-and-a-half-year trough.

Spot gold climbed 2% to $1,660.62 per ounce, to recoup some losses from a slide to its lowest since April 2020.

At 9:39 am, gold contracts were trading 0.09 percent higher on the Multi-Commodity Exchange (MCX) at Rs 49,794 for 10 grams and silver shed 0.33 percent at Rs 56,340 a kilogram.

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Jigar Trivedi, Senior Research Analyst - Commodity & Currency, Reliance Securities

Comex gold enjoyed a wave of a strong momentum. It rebounded from a crucial technical support of $1,620 an ounce as treasury yields and overall negative sentiment around the dollar lent optimism to the yellow metal bulls. Market move came after the Bank of England started new emergency quantitative easing to deal with a tumult in the gilt market triggered by a dubious fiscal plan recently announced by the UK government.

The Fed has constantly been reaffirming its commitment to do what is necessary to bring down inflation, even at the risk of a recession and further volatility. Since yesterday gold rebounded sharply; we may see some pullback in today's session but the undertone may change to positive ahead of a festival season in India.

Abhishek Chauhan, VP Commodity – Currency, Mandot Securities

Gold prices recovered sharply from multi-year lows as weakness in US dollar from 114.50 mark kept the demand for safe haven gold intact at lower levels as markets remained wary of another resurgence in the US dollar and treasury yields.

Comex gold prices fell 0.3% to $1,655.86 in the early morning session on Thursday but saw strong buying in the earlier session on Wednesday. Gold and silver surged nearly 2% on Wednesday, logging their best day in two months. In comex, gold has support at $1640-1630 while resistance is at $1680-1690. Silver has support at $18.30-18.40 while resistance is at $19.00-19.10; gold at MCX has support at Rs 49400-49500 and resistance is at Rs 49900-50100. Silver has support at Rs 56200-56000, while resistance is at Rs 56800–57000.

Nirpendra Yadav, Senior Research Analyst, Swastika Investmart

Prices of precious metals gained yesterday as the US benchmark Treasury yield slipped 5%. US dollar index also retreated from 22-year high due to a sharp fall in Treasury yields. Short-covering in gold due to current contract expiry also supported bullion prices. Technically, short-term trends in gold and silver may remain on the upside. Gold has support at Rs 49700 and resistance at Rs 50500. Silver has support at Rs 55300 and resistance at Rs 57700.

(Agency inputs)

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Sandip Das
first published: Sep 29, 2022 09:46 am