Gold Price Today: Yellow metal to remain volatile, may stay rangebound with positive bias

Gold Price Today: Yellow metal to remain volatile, may stay rangebound with positive bias

Gold was holding firm in Indian markets on October 8 on steady global cues as investors stayed away from making big bets ahead of the US non-farm payrolls report that is considered key to the Federal Reserve’s stimulus taper timeline.

On the Multi-Commodity Exchange (MCX), gold contracts were up 0.15 percent to Rs 46,897 for 10 grams at 9.21 am. December silver futures were down 0.42 percent to Rs 61,000 a kilogram.

Gold rose Rs 73 to Rs 46,918 for 10 gram the previous day on dollar weakness and subdued global cues. The precious metal has been trading in a narrow band amid a lack of fresh trigger as investors await US jobs report which will provide further cues on the Fed’s tapering timeline.

Reduced stimulus and higher interest rates lift bond yields, translating into increased opportunity costs of holding bullion that pays no interest.

The dollar index remained down despite better unemployment data. However, the US 10-year bond yield rose to 1.56 percent levels. Improvement in the jobs data may put pressure on precious metals and support the risky assets.

Gold has resistance at Rs 47,000 and if fails to break it ahead of the non-farm payroll data, prices may test the