Gold on an upward climb despite dollar strength

MUMBAI: Gold prices showed a positive trend at the local bullion market on Monday despite a stronger US dollar as investors put faith on the yellow metal. However, market moved moved in a narrow range as major players investors remained cautioned ahead of US Fed meeting later this week where the board is expected to hike interest rates.

According to a section of marketmen, domestic gold prices are expected to fall from the current prices this week when the global market will take positions after the outcome of US Fed meeting..

“Gold is sitting on the fence with inflation fears on one side and worries about growth on the other. It’s hard to say which way gold will land,” agency reports said quoting a dealer in London as saying. Higher US interest rates support the dollar and may diminish gold’s attraction as an alternative investment.

Silver also extended gain in line with gold, supported by renewed enquiries from industrial users. Back home, in Kolkata standard gold (99.5) recorded a fresh gain of Rs 105 at Rs 8,955 per 10 gm.

In Mumbai, it opened on a promising note at Rs 8,785 on brisk buying and forged ahead further to settle at Rs 8,790, up Rs 40 over the last close of Rs 8,750. Pure gold (99.9) also did so and closed Rs 40 higher at Rs 8,835. In Delhi, the yellow metal rose by Rs 20 at Rs 8,910 on late buying.

In overseas market, gold for immediate delivery traded at $584.2/585.2 an ounce in London. The metal closed at $582.8/583.5 in New York on Friday. In Hong Kong, it rose to $585.0/586.0 an ounce from the previous close of $582.0/583.0.

Turning to silver, spot silver (.999) after opening at Rs 16,135 in Mumbai, edged up further and closed Rs 65 higher at Rs 16,165 per kg.

In London, the white metal rose to $10.29/10.39 an ounce from the previous level of $10.25/10.35. However, the metal remained flat in Kolkata and closed at the previous level of Rs 15,800. Delhi also did the same and closed at Saturday’s closing level of Rs 15,950 per kg.