Gold futures were last seen trading lower by Rs 98- or 0.21 per cent – at Rs 45,971
Gold Price In India: Gold futures traded lower on Tuesday, September 28, as the yellow metal mirrored trends in the international markets. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 98 – or 0.21 per cent – at Rs 45,971, compared to their previous close of Rs 46,069. Silver futures due for a December 3 delivery were last down 0.25 per cent at Rs 60,485 against a previous close of Rs 60,634.
Experts believe that gold will continue to remain choppy as the safe haven appeal will be offset by the US federal Reserve’s rate hike expectations. In order to keep inflation in check, many policymakers at the US Federal Reserve anticipate a hike in interest rates as son as November.
Gold prices are also hurt by U.S treasury. yields – which have soared by a hawkish shift at the Federal Reserve as it may start tapering stimulus as the economy continues to recover.
On Tuesday, the rupee inched eight paise higher to 73.75 against the dollar in an early trade session. Gold is a safe haven buy for investors as it provides a hedge against inflation. If the rupee weakens against the greenback, gold prices may appreciate in rupee terms.
What analysts say:
Mr Amit Pabari, MD, CR Forex:
”The rupee could continue its yesterday’s weakening bias as the US 10 year yield rose to a three-month high- touching 1.516 per cent led by higher energy prices across the US, Europe, and UK.
Domestically, equities are likely to remain well diverse with other peers and could take cues from the inflows.
However, it would be interesting to watch how momentum in US and Indian benchmark yields is unfolding. The RBI could try to keep the domestic yield under control as the government announced their planned H2 2022 borrowings for the remaining Rs. 5.03 trillion. In that case, the squeezing of yield differential could favor USD and so rupee could feel a hit.”
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
”COMEX gold trades little changed near $1753/oz after a flat close in previous session. Gold is range bound as support from global growth worries and rising inflation concerns amid energy crisis is countered by firmness in US dollar and increased expectations of monetary tightening by Fed and other central banks.
ETF outflows also show weaker investor interest. Gold may remain choppy as safe haven buying will be offset by Fed’s rate hike expectations.”
For all the latest business News Click Here
