Gold prices were trading higher in India on Thursday, following the international spot prices.
Gold prices were trading higher in India on Thursday, following the international spot prices. On MCX, gold June futures were trading Rs 155 or 0.33 per cent up at Rs 46,763 per 10 gram, against the previous close of Rs 46,608. While silver May futures were trading at Rs 67,826 per kg, up Rs 188 or 0.28 per cent. MCX silver closed at Rs 67,638 in the previous session. Analysts believe gold traders need more catalysts to retain the uptrend. The resurgence in talks of Biden’s infrastructure plan will activate buying pressure in gold. “Until then gold will be stuck in a sideways trend, with major resistance around 47500 and then at 48850. While support is located at 45000 below which next support is around 43350,” Rahul Gupta, Head of Research, Emkay Global Financial Services, told Financial Express Online.
MCX gold was down Rs 9,398 per 10 gram from a record high of Rs 56,191 hit in August last year. In the global market, gold prices edged higher buoyed by a weaker dollar, while investors awaited US weekly jobless claims and March retail sales data for further clarity on the recovery in the world’s largest economy. Spot gold rose 0.1 per cent to $1,738.38 per ounce while US gold futures were up 0.2 per cent at $1,739.20 per ounce, according to Reuters. The dollar held near a three-week low against rival currencies, while benchmark US Treasury yields ticked up after hitting a three-week low on Wednesday. A weaker dollar makes gold cheaper for buyers outside the US, but rising yields increase the opportunity cost of holding the metal that pays no returns.
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COMEX gold was trading little changed near $1735/oz after a 0.6 per cent decline in the previous session. Gold eased back after failing to sustain above $1750/oz. “Weighing on gold price is increasing optimism about the US economy and continuing ETF outflows,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities. However, supporting price is Fed’s emphasis on keeping interest rates low and worsening the virus situation. “Gold is struggling to sustain above $1750/oz amid mixed factors however rising virus cases and loose monetary policy stance may continue to support prices,” Rao added.