Equity world-Gold prices rose in late trading Wednesday on Wednesday because of growing demand from India’s physical but growing expectations of a rise in U.S. interest rates hold the increase more more.
The price of spot gold rose LLG 0.8 per cent at $ 1, 274.51 per ounce, while U.S. gold futures price for December closed at 1,273.60 per ounce. This precious metal is highly sensitive to rising interest rates, which raised the opportunity cost of holding non-winning assets while u.s. dollars increase.
Analysts said demand from India is expected to remain high with the festival, including the Dhanteras and Diwali, which will be celebrated at the end of the month, as two of the most important Hindu festival where gold is traditionally given as a gift.
At the same time, the market seemed cautious, gold trading in a narrow range, as Netanyahu’s statements from U.S. Federal Reserve officials and upbeat economic data looks to increase the likelihood of a rise in interest rates this year.
Chicago Fed President Charles Evans said on Monday the U.S. central bank will raise rates three times as a reference at the end of next year, if expectations of inflation and the labor market continues to improve. A Markit survey of u.s. manufacturing rose to the top of one year of 53.2, while business activity in Europe is growing at the fastest rate this year so far in October.
In terms of technical support to the gold appears to be between $ 1,250 and $ 1,260, which restrict the movement down, MKS PAMP said in a note. “The market priced in occasion of 70 percent to the increase in U.S. interest rates in December, then it is difficult to see the yellow metal draw too much from this level in the short term,” added the trader in precious metals.
Silver rose 0.6 per cent at $ 17.66 per ounce. It touches more than a 2-week high of $ 17.88 on the previous session. Platinum rose 1.2 per cent at $ 947.20 an ounce, while Palladium climbed 1.07 percent at $ 637.50.
Analyst Equity Research Center estimated the price of gold on the next trade could potentially go up with increased demand and a weakening of the Wall Street stock exchange. The price is estimated to be moving in the range of $ 1.277 Resistance-$ 1.279, while if prices fall will move in a range of Support $ 1.273-$ 1.271.