Both Gold price and silver price are trading on the upward side of the Multi Commodity Exchange on Tuesday, January 25, 2022. Gold futures maturing on February 4, 2022, are selling at Rs 48,620 per 10 grams on the MCX. It is a tiny increase of Rs 24 or 0.05 percent.
Meanwhile, the rate of silver futures, maturing on March 4, 2022, stands at Rs 63,999 per kg, recording a jump of 0.04 per cent or Rs 27.
Notably, the prices of gold and silver stood at Rs 48,564 per 10 grams and Rs 63,958 per kg respectively when the market closed on January 24.
Gold and silver prices in major Indian cities:
| CITY | GOLD (per 10 grams, 22 carats) | SILVER (per kg) |
| NEW DELHI | Rs 47,650 | Rs 64,700 |
| MUMBAI | Rs 47,650 | Rs 64,700 |
| KOLKATA | Rs 47,800 | Rs 64,700 |
| CHENNAI | Rs 45,830 | Rs 69,700 |
Gold and silver prices on the international market:
The Gold prices were little changed on Tuesday, as investors awaited interest rate hike cues from the U.S. Federal Reserve’s meeting. Also, benchmark U.S. 10-year Treasury yields fell to one-week lows on Monday.
Gold price was flat at $1,841.56 per ounce by 0117 GMT. Meanwhile, U.S. gold futures were also steady at $1,842.90.
Notably, gold is generally considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates. It’s ultimately increasing the opportunity cost of holding non-interest bearing bullion, news agency Reuters reported.
The yellow gold is gaining ground, while silver is holding at Rs 64,000.
Gold prices were barely changed on Tuesday as investors waited for clues on interest rate hikes from the Federal Reserve meeting in the United States.
Investors are concentrating on the Fed’s two-day policy meeting, which begins on Tuesday, with anticipation that the central bank would telegraph a 25-basis-point rate hike in March. Gold futures on the MCX rose by only 0.05 percent, or Rs 24, to Rs 48,588 per 10 kilos. Silver futures rose 0.17 percent, or Rs 101, to Rs 64,064 per kilogram.
“Concerns about increasing prices and tensions between Russia and Ukraine have kept the safe-haven charm intact. Investors are mostly looking forward to the US Fed meeting for signals on future interest rate rises “Ravi Singh, VP and Head of Research at Share India, agreed.
Risk-off trades fueled by Russia-Ukraine tensions boosted safe-haven bullion. On Monday, benchmark 10-year US Treasury rates fell to one-week lows, lowering the potential cost of keeping non-interest bearing metal.
Last week, Gold price was sold at a discount in India due to weak demand, as jewelers anticipated the country’s annual budget, while the forthcoming Lunar New Year boosted demand in other important Asian markets.
According to the Indian Bullion and Jewelers Association, the highest quality gold was sold for Rs 48,793 per 10 grammes on Monday, while silver was purchased at Rs 64,422 per kilogram.
Spot Gold prices have risen by more than Rs 1,400 in the previous two weeks, while silver prices have risen by more than Rs 4,400 per kilogramme during the same period.
Trading strategy:
According to Singh, gold prices may experience some profit-taking following the Fed meeting. He suggested buying gold at Rs 48,600 with a target of Rs 48,800 and selling gold below Rs 48,250 with a target of Rs 48,000.
Global markets:
By 0117 GMT, spot Gold Price remained unchanged at $1,841.56 per ounce. Gold futures in the United States were likewise unchanged at $1,842.90.
Spot silver lost 0.8% to $23.77 per ounce. Palladium fell 0.6% to $2,134.69, while platinum fell 0.7% to $1,019.48.
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