NEW DELHI: Gold prices edged higher on Wednesday in the domestic market, tracking global cues. Gains in the yellow metal are supported by a subdued dollar.

Gold futures on MCX were up 0.15 per cent, or Rs 72, at Rs 47,936 per 10 gram. Silver futures traded 0.31 per cent, or Rs 210, higher at 68,124 per kg.

Gold prices have been in range-bound trading with lower volume on mixed global cues. Rising worries over the spreading of the Delta variant cases has capped downside in gold while traders and investors are cautious.

The dollar was pinned near recent lows against other currencies. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Ravindra Rao, VP – Head of Commodity Research at Kotak Securities, said gold has continued to trade in a range above $1,800/oz amid choppiness in equities and US dollar and uncertainty ahead of the US jobs report.

“However, supporting prices are rising virus cases, concerns about Chinese economy and uneven economic recovery. ETF outflows, however, show weaker investor interest,” he added.

In the spot market, highest purity gold was sold at Rs 48,017 per 10 gram while silver was priced at Rs 67,752 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

Trading strategy
“We expect gold prices to trade sideways to up 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 47,600 and resistance at Rs 48,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold rose 0.2% to $1,814.27 per ounce by 0303 GMT, while US gold futures were 0.1% higher at $1,816.00.

Silver gained 0.4% to $25.65 per ounce, while platinum was up 0.1% at $1,050.39. Palladium rose 0.2% to $2,652.99 per ounce, having hit a one-week high of $2,707.28 in the previous session.