MORNING LIVE BULLION UPDATE :
In global markets, spot gold prices rose close to $1,245 per ounce while in Indian markets, gold prices crossed Rs 32,000 level.
In global markets, gold rebounded on Thursday to a near five-month peak as the dollar declined amid expectations of a slowdown in the pace of US interest rate hikes, with investors seeking refuge in the bullion from a sell-off in global stocks. Spot gold rose 0.26% to $1,240.72 per ounce, having earlier reached $1,244.32 per ounce, its highest since July 17. US gold futures were 0.28% higher at $1,246.10 per ounce. Back in India, gold prices on Thursday rose by Rs 170 to close at Rs 32,120 per 10 gram at the bullion market in Delhi on increase in demand from local jewellers amid firm trend in the overseas market. Silver rates also inched up by Rs 25 to close at Rs 37,625 per kg on slightly higher demand from industrial units and coin makers.
“What we are seeing is a lot of safe-haven support with the equity markets selling off, coupled with a weakness in the US dollar,” said Alex Turro, market strategist at RJO Futures.
“Jobless claims came weaker than expected and ADP numbers missed. That leads us to the fact that the US Federal Reserve may be coming off the hawkish tone they had and this ultimately is just going to provide more underlined support for gold.”
Traders’ attention is now turning to Friday’s non-farm payrolls report, which is also likely to be on the U.S. central bank’s radar.
The dollar fell about 0.5% as U.S. Treasury yields tumbled and traders scaled back expectations on the number of hikes the Fed would implement amid weakening economic data and market volatility.
“The weaker dollar is keeping gold positive at the moment. If you look at the other markets as well, there is a kind of risk-off situation going on,” said Phil Streible, senior commodities strategist at RJO Futures in Chicago.
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