Gold rate today: Yellow metal surges on global cues, trades above Rs 38,300

Traders resorted to safe havens as gold and silver surged on Thursday after tussles among the world's major trading blocs intensified and US and India posted weak macro data.

The United States on Wednesday said it would enact 10 per cent tariffs on European-made Airbus planes and 25 per cent duties on French wine, Scotch and Irish whiskies and cheese from across the continent as punishment for illegal EU aircraft subsidies. The move could ignite a tit-for-tat transatlantic trade war.

MCX Gold (Dec) futures were up 1 per cent or Rs 410 to Rs 38,300. MCX Silver (Dec) futures were trading 1.7 per cent up at Rs 45,630.


In the international markets, gold prices extended their gains on Thursday as weaker-than-expected US jobs data reinforced global economic slowdown fears and raised expectations of further monetary policy easing by the US Federal Reserve.



Spot gold was up 0.1 per cent at $1,500.59 per ounce at 0105 GMT. Prices rose 1.4 per cent on Wednesday, the biggest one-day percentage gain since August 23. US gold futures were down 0.1 per cent at $1,506.4 an ounce.

According to Reuters analyst, spot gold may end its bounce in a range of $1,514-1,524 per ounce, as suggested by a retracement analysis and a falling channel.

The bounce followed a completion of a three-wave cycle from $1,557. The cycle is a part of a bigger cycle, which may eventually extend into the range of $1,377-1,411, formed by the 61.8 per cent and the 50 per cent retracements of the uptrend from $1,265.85 to $1,557.

The falling channel suggests that the second part of the bigger cycle, which is labelled B, may end around $1,514. Only a rise above $1,537 could confirm the continuation of the uptrend.

On the daily chart, the uptrend from $1,265.90 consists of five waves. The bottom of the wave 4 around $1,382 may be revisited.

A projection analysis reveals a resistance at $1,524, the 138.2 per cent level of the uptrend. The resistance may work together with the one at $1,214 on the hourly chart to stop the bounce.