Gold prices rose on Tuesday, supported by a weaker currency and the prospect of the U.S. Federal Reserve prolonging the end of its pandemic-era bond purchases. By 0108 GMT, spot gold had risen 0.2 percent to $1,826.75 per ounce.
Following poor non-farm payrolls statistics in the United States, prices reached a two-and-a-half-month high last week. Significant job recovery is required for the Fed to begin reducing its stimulus measures.
Some investors see gold as a hedge against possible inflationary consequences of stimulus efforts. At the same time, lower interest rates reduce the opportunity cost of keeping non-yielding bullion.
Gold futures in the United States fell 0.3 percent to $1,828.00.
MCX Silver futures likewise held in a modest range. Meanwhile, at Rs 65,550, the price is lingering near the 50-DEMA. A trade through the 50-DEMA will take it towards the 200-DEMA’s necessary resistance level of Rs 66,000, which might be the day’s higher range. The primary support zones for the day are Rs 64,200 and Rs 62,900 on the negative. On the momentum front, the RSI has risen over 50, bolstering the bull thesis. The price is as long as Rs 62,900 holds.
Base Metals and Brent Crude
In morning trade, base metals were sluggish. Aluminum prices were around 10-year highs in their top trading band. After a military coup in Guinea sparked uncertainty in a significant portion of the metal’s global supply chain, aluminum traded near its highest level since 2011. With an increase in supply from Chile, copper prices have been under pressure. X.J. Nippon Mining & Metals’ Caserones mine struck a wage agreement on Saturday, ending a nearly month-long strike.
After sliding 39 cents on Monday, Brent crude futures were down 27 cents, or 0.4 percent, at $71.95 a barrel by 1135 GMT. Due to the United States’ Labor Day weekend, there was no settlement price for Monday. U.S. West Texas Intermediate oil traded at $68.53 a barrel, down 76 cents, or 1.1 percent, from Friday’s closing. On the other hand, Chinese solid economic indications supported oil prices, as did prolonged supply disruptions in the United States due to Hurricane Ida.
According to customs data, China’s crude oil imports increased by 8% in August compared to the previous month, as refiners restarted purchases following new import limitations.