NEW DELHI: Gold prices were trading flat on Thursday, edging marginally lower, after steadying near a two-month peak, hit during the previous session.
Higher US Treasury yields prevented any gains amid caution building around developments at the US Federal Reserve’s meeting due next week.
Gold futures on MCX were flat, marginally down by 0.01 per cent or Rs 04 at Rs 48,373 per 10 grams. Silver futures jumped by 0.12 per cent or Rs 78 at Rs 64,483 per kg.
Gold saw its best session in three months on Wednesday as a retreat in the dollar and geopolitical tensions surrounding Ukraine lifted safe-haven appeal, sparking a rally in precious metals.
Gold is considered an inflationary hedge, but the metal is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-interest bearing bullion.
Gold rose more than 1 per cent on Wednesday as a retreat in the dollar and geopolitical tensions surrounding Ukraine burnished safe-haven bullion’s appeal, sparking a rally in precious metals, said Vidit Garg, Director, MyGoldKart.
Physical gold buying faltered in India last week, as prices climbed and rising coronavirus cases prompted consumers to postpone purchases, while demand in top consumer China stabilised ahead of new year festivities.
In the spot market, the highest purity gold was sold at Rs 48,250 per 10 grams. Silver was priced at Rs 63,557 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained over Rs 625 since the previous Monday, whereas Silver has jumped more than Rs 3,200 per kg after January 10.
Trading strategy
Gold price in MCX has broken the resistance of 48,000, where most of the sellers have placed their stop losses. The surge in volume showed that gold is now in strong hands and may be towards the 49,000 level in the next trading sessions, said Ravi Singh, Vice President and Head of Research, ShareIndia.
He advised to buy gold near Rs 48,150 for the target of Rs 48,500 and sell below Rs 48,000 for the target of Rs 47,800.
Global markets
Spot gold was flat at $1,839.36 per ounce as of 0031 GMT, steadying near its highest since November 22. US gold futures were down 0.1 per cent at $1,840.60.
Spot silver was down 0.1 per cent at $24.09 an ounce, platinum edged 0.1 per cent higher to $1,022.60, and palladium fell 0.4 per cent to $1,992.71.