NEW DELHI: Gold prices were trading with big cuts in the domestic market today, following weaker global cues. A steady dollar pushed the yellow metal lower.

Gold futures on MCX were down 0.37 per cent, or Rs 178, at Rs 47,908 per 10 gram. Silver futures traded 0.61 per cent, or Rs 411, lower at 67,478 per kg.

Investors avoided taking big positions ahead of the key US non-farm payroll data due later this week, although growing concerns over rising coronavirus cases limited the decline.

Ravindra Rao, VP – Head Commodity Research at Kotak Securities, said gold is choppy but range-bound amid volatility in equities and US dollar and as market players assess Fed’s monetary policy stance.

“However, supporting price is rising virus concerns, concerns about slowdown in Chinese economy and mixed economic data from major economies. Gold may remain choppy but virus concerns and global growth worries may keep price supported,” he added.

In the spot market, highest purity gold was sold at Rs 48,034 per 10 gram while silver was priced at Rs 67,906 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

The demand for physical gold remained subdued in India last week as rising prices discouraged retail purchases. The spot prices of precious metals have been almost flat in the last one month.

Trading strategy
“We expect gold prices to trade sideways to up for the day for the day with COMEX spot gold support at $1,800 and resistance at $1,820 per ounce. MCX Gold October support lies at Rs 47,800 and resistance at Rs 48,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold fell 0.2% to $1,810.56 per ounce by 0121 GMT, while US gold futures fell 0.5% to $1,813.80.

Silver fell 0.4% to $25.33 per ounce, palladium rose 0.2% to $2,680.32, while platinum was down 0.6% to $1,050.83.