New Delhi, November 15 (IANS). This week, the price of 24 carat gold has registered a rise of Rs 4,694 per 10, which got support from safe haven buying and fall in dollar. However, after the end of the US shutdown, gold prices saw a decline from its weekly high on Friday.
According to India Bullion and Jewelers Association (IBJA), the price of 10 grams of 24 carat gold was recorded at Rs 1,24,794, which was recorded at Rs 1,20,100 per 10 grams last week.
On Friday, domestic gold prices traded with a sharp fall of around Rs 5000/per 10 grams intraday and touched the day’s low at Rs 1,21,895 per 10 grams. However, prices recovered later.
The price of the yellow metal fell by $127 per troy ounce in the international market as traders reacted to diminishing expectations of an upcoming interest rate cut by the Federal Reserve.
International bullion remained at $4,000 this week after hawkish comments from US Federal Reserve Chairman Jerome Powell dampened expectations of a further cut in interest rates.
Market expectations for the next interest rate cut in December fell from 90 per cent to 60 per cent, putting pressure on bullion, while the dollar index closed near 100 and the US dollar-rupee near 89.
Market analysts said uncertainty caused by the lack of US economic data has increased safe-haven demand. So precious metals are set for their best weekly performance in November.
According to the analyst, the support zone for gold is at Rs 1,25,750-Rs 1,24,980 and the resistance level is at Rs 1,27,750-Rs 1,28,400. Whereas the support level of silver remains at Rs 1,60,950-Rs 1,59,400 and resistance at Rs 1,63,850-Rs 1,64,900.
–IANS
SKT/