NEW DELHI: Gold prices held near a week’s high level on Monday. A plunge in US consumer sentiment allayed some concerns of an early tapering by the Federal Reserve.
Gold futures on MCX were marginally up 0.08 per cent, or Rs 37, at Rs 46,977 per 10 gram. Silver futures shed 0.09 per cent, or Rs 56, at Rs 63,182 per kg.
Gold prices were supported by dollar decline and fall in US treasury yields after US consumer sentiment fell in early August to the lowest level in nearly a decade. Rising cases of Delta variant of coronavirus threaten to dent the pace of economic recovery.
“The yellow metal made a strong come back on Friday, gaining more than 1% for the week. Gold prices were supported by dollar decline and fall in US treasury yields after US consumer sentiment fell in early August to the lowest level in nearly a decade,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Physical gold demand in Asia got a fillip last week as consumers snapped up bargains after prices dipped across regions, with premiums in top consumers India and China rebounding to multi-month highs.
In the spot market, highest purity gold was sold at Rs 46,702 per 10 gram while silver was priced at Rs 62,612 per kg on Friday, according to the Indian Bullion and Jewellers Association.
Gold and silver today continued to struggle in the Indian market. Spot prices of the yellow metal have tanked about Rs 950 in the last one week. Similarly, prices of silver have declined by about Rs 4,100 during the period.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold October support lies at Rs 46,600 and resistance at Rs 47,200 per 10 gram,” added Patel of HDFC Securities.
Global markets
Spot gold fell 0.1% to $1,776.78 per ounce by 0342 GMT, having earlier hit its highest since August 6 at $1,782.40. US gold futures were flat at $1,778.50.
Silver fell 0.2% to $23.70 per ounce. Platinum slipped 1% to $1,016.01 and palladium was down 0.5% at $2,635.71.