NEW DELHI: Gold prices traded higher on Tuesday as a decline in the US dollar and US bond yields provided some support to the precious metal.
Buyers in other currencies made the bullion cheaper, supporting the yellow metal. The dollar index declined and languished near the lows of its recent range.
Gold futures on MCX were trading up 0.17 per cent, or Rs 82, at Rs 47,373 per 10 gram. Similarly, silver futures were up 0.54 per cent, or Rs 339, at Rs 63,605 per kg.
Gold prices traded firm. The yellow metal traded higher supported by weaker dollar and softer US bond yields. The slump in equity indices also boosted buying in gold.
Ravi Singh, Vice President & Head of Research, Share India, said gold traded marginally higher yesterday taking cues from rising demand of gold globally. However, the rising US Treasury yields are continuously putting pressure on gold prices and capping the upward move.
“After the sharp profit booking, the outlook of gold is still positive and investors are advised to go long on every correction in gold futures,” he added.
According to data from the Commerce Ministry, gold imports increased to about $24 billion during April-September 2021 from $6.8 billion in the previous year, ahead of the busy festive season.
In the spot market, highest purity gold was sold at Rs 47,384 per 10 gram while silver was priced at Rs 63,110 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained about Rs 1,000 per 10 gram in the last two weeks, whereas silver has risen more than Rs 3,100 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot support at $1,750 and resistance at $1,790 per ounce. MCX Gold December support lies at Rs 47,100 and resistance at Rs 47,500 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.2% to $1,767.91 per ounce by 0126 GMT. U.S. gold futures rose 0.2% to $1,769.60
Spot silver rose 0.5% to $23.29 an ounce, while platinum gained 0.4% to $1,039.40 and palladium rose 0.3% to $2,020.80.