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HomeNewsGold prices today rise in India after some countries ban Russia imports

Gold prices today rise in India after some countries ban Russia imports

Gold prices today edged higher in Indian markets, after some G7 countries moved to ban imports of Russian gold. On MCX, gold futures rose 0.4% to 50814 per 10 gram while silver jumped 0.9% to 60927 per kg.  In global markets, spot gold prices rose  0.5% to $1,835.58 per ounce.  Analysts say that the G7 import ban on Russian gold seems to be providing some short-term support to bullion. Four of the Group of Seven (G7) rich nations moved to ban imports of Russian gold on Sunday to tighten the sanction squeeze on Moscow and cut off its means of financing the invasion of Ukraine.

Spot silver rose 1.2% to $21.36 per ounce, platinum gained 0.5% to $912.00 and palladium climbed 0.6% to $1,886.65.

“COMEX gold trades modestly higher near $1835/oz amid weakness in US dollar and concerns about Russian supply as some G7 countries plan to ban new gold imports from Russia. Gold is also supported by increasing growth concerns amid disappointing data and downbeat growth forecasts. Monetary tightening expectations and some stability in equities has however limited upside. Gold ETF’s have also seen net outflows reflecting weaker investor buying. Gold may remain a range amid warring factors however Fed’s tightening expectations may keep pressure on prices,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding bullion, which yields no interest.

“Bullion prices slipped last week as gold slipped to four week lows and silver prices plunged to six week lows. The narrative of global investors has shifted from the problematic inflation to global economic recession. Global commodity and energy prices crashed last week amid demand concerns due to worries of global economic slowdown. Global equity markets also recovered from their lows after a sharp decline in global energy prices. However, profit taking in the dollar index and downbeat U.S. economic data supported gold and silver at lower levels,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“We expect both precious metals to remain volatile this week. Gold has the metal’s multiple rejections from the 200-DMA hurdle of $1,845, as well as the sustained trading below the 50-DMA, around $1,856 by the press time, also keeps gold sellers hopeful. Silver is trading near the make or break levels and if $20.78 holds on a weekly closing basis it could show strength again towards $22 per troy ounce in upcoming sessions. In rupee terms gold has support at 50,440–50,110, while resistance is at 50,980–51,240. Silver has support at Rs59,280–58,710, while resistance is at 60,480–60,910,” he added. (With Agency Inputs)





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