Domestic gold prices rose on Tuesday, September 27, as the dollar slipped, but the metal languished near a 2-1/2-year low on prospects of further rate hikes by the US Federal Reserve to tame soaring inflation.

Share Market Live

NSE

On MCX, gold prices were up 0.07 percent, touching the intraday high of Rs 49,183 amid choppy trade as of 11:10 am on Tuesday. Meanwhile, silver prices gained 0.36 percent, surging to Rs 55,551.

In the initial trade, US gold futures edged 0.2 percent higher to $1,636.30. At the time of writing this report, the US Dollar Index Futures was down 0.5 percent at 113.445. Amid the sliding dollar, the rupee appreciated by as much as 13 paise to Rs 81.49 after settling at a record closing low of 81.62 vs the dollar in the previous session.

Meanwhile, Brent crude and West Texas Intermediate futures rose 0.6 percent each. Brent has, however, retreated about 40 percent from the highest level of the year so far.

Ajay Kedia, Founder and Director, Kedia Advisory, said that technically, the market is under long liquidation as the market has witnessed a drop in open interest by -11.03 percent to settle at 5,937 while prices are down -599 rupees. He expects gold futures to move within a range of Rs 48,731-49,897 on Tuesday.

Meanwhile, Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, expects both precious metals to remain volatile. "Gold has support at $1622-1608, while resistance at $1644-1658 per troy ounce. Silver has support at $18.22-18.00., while resistance is at $18.66-18.84 per troy ounce," he said.