Gold prices remained weak for the third day in Indian markets today in tandem with softer global rates. On MCX, gold futures were up 0.17% to ₹47,398 per 10 gram while silver futures gained 1% to ₹69,900 per kg. In the previous two sessions, gold had lost about ₹800 per 10 gram. In global markets, gold eased today after a jump in US Treasury yields, which hit nearly 11-month high. Gold fell 0.2% to $1,820 an ounce. Higher bond yields increases the opportunity cost of holding non-yielding assets like gold.
“Gold prices remain choppy inside $1875-1780 levels and breaking any of the sides would suggest fresh direction to the commodity. A direct drop below $1780 a short term bearish signal,” Geojit Financial said in a note.
MCX gold faces resistance at ₹48,060 per 10 gram while has support at ₹46,220 levels, the brokerage said.
Supporting gold is increased expectations of additional stimulus measures in US and hopes of higher demand from China and India, Kotak Securities said in a note.
“With no fresh factors, gold may continue to be affected by trend in US dollar and we may see some more correction if US currency manages to strengthen,” the brokerage said.
Asian equity markets were firm today as investors are betting that coronavirus vaccine rollouts and US government spending will boost the economic recovery,
Investors are also cheering positive GDP reports, with Japan’s economy expanding more than expected and Singapore’s economy contracting less than initially estimated in the fourth quarter. US Treasury Secretary Janet Yellen spoke to her G7 counterparts last week and called for continued fiscal support to secure the economic recovery.
Among other precious metals, silver gained 0.4% to $27.46 an ounce while palladium climbed 0.1% to $2,389.67.
Silver may trade with higher volatility where it may find support near ₹68,790 and facing resistance near ₹69700, SMC Global said in a note.
Back in India, physical gold demand eased last week, Reuters reported citing dealers, with buyers put off by volatility in prices. Dealers charged premiums of about $5 an ounce over official domestic prices versus previous week’s $6 premium, a six-month peak. (With Agency Inputs)