Gold prices edged higher to settle at Rs 47,571 per 10 gram on special one hour Diwali Muhurat Trading on the MCX, tracking firm global trend as Bank of England kept its interest unchanged a day after the Federal Reserve announced trimming of bond purchases by $15 billion a month but did not give any indication of a rate hike. However, weighing on the price is strength in the dollar index rebounding to three-and-a-half weeks high capped the upside.
The precious metal has been consolidating in a broad range of $50 since October as its struggles to break the resistance of $1,810-1,815 on the upside and $1,760-1,750 support on the downside. Price break on either side of the given range will give further direction.
The yellow metal rose in two out of four trading sessions on the MCX in a holiday-shortened week and ended the week with a mild loss of Rs 64 or 0.13 percent.
The bullion metal has been trading lower than its 5, 20, 50, 100, and 200 days’ simple moving averages and exponential moving averages on the daily chart. The momentum indicator Relative Strength Index (RSI) is at 52.64, which suggests a sideways trend in the prices.
The US Labour Department said that the number of Americans filing claims for unemployment benefits fell by 14,000 to seasonally adjusted pandemic low of 269,000 for the week ended October 30, a sign of recovery in the job market.
Gold holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund fell by 1.45 tonnes to 978.07 tonnes. The ETF has a market value of $55.43 billion.
The dollar index soared above 94 marks to 94.30, up 0.48 percent against a basket of six rival currencies.
The spot gold/silver ratio currently stands at 74.8 to 1 indicating that silver has outperformed gold.
Silver prices climbed by Rs 1,759, or 2.83 percent to close at Rs 6,224 per kg on the MCX.
Spot gold surged by $26.54 at $1,796.36 ounce at 1422 GMT in London trading.
Gold futures for December delivery gained by Rs 571, or 1.21 percent, to settle at Rs 47,571, with a business turnover of 7,914 lots. The same for the February contract rose by Rs 525, or 1.11 percent, to Rs 47,687 on a business turnover of 5,086 lots.
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