NEW DELHI: Gold and silver futures were trading lower on Tuesday pressured by a stronger US dollar and higher Treasury yields on optimism around a quick economic recovery as vaccinations gain momentum.

The dollar climbed to a one-year high against the yen on Tuesday as accelerating vaccinations and massive stimulus in the US stoked inflation concerns.

Gold futures on MCX were down 0.33 per cent or Rs 149 at Rs 44,549 per 10 grams. Silver futures dipped 0.30 per cent or Rs 194 to Rs 63,980 per kg.

“Gold trades weaker, weighed down by sharp rise in US bond yields and firmness in the US dollar amid increasing optimism about the US economy. Also weighing on price is progress on vaccine front and recovery in Chinese equities and weaker investor interest. However, supporting price is rising virus cases and loose monetary policy stance of major central banks,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

In the spot market, gold in the national capital declined by Rs 147 to Rs 44,081 per 10 gram on Friday amid rupee appreciation and overnight selling in global precious metal prices. In contrast, silver rose by Rs 1,036 to Rs 64,276 per kilogram.

Trading strategy

“We expect gold prices to trade sideways to down for the day with COMEX gold prices support at $1,690 per ounce and $1,720 per ounce. MCX Gold June support lies at Rs 44,200 per 10 gram and resistance at Rs 44,900 per 10 gram.,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold fell 0.1 per cent to $1,710.03 per ounce by 0141 GMT. US gold futures declined 0.2 per cent to $1,711.10 per ounce. Gold fell to $1,704.90 per ounce on Monday, the lowest level since March 12.

Silver fell 0.3 per cent to $24.59 and platinum was down 0.7 per cent, at $1,167.51 Palladium was little changed at $2,529.76, having slid 5.5 per cent in the last session.