NEW DELHI: Gold prices were mildly higher in Indian market on Friday, tracking flat trends in other Asian peers. The precious metal was headed for a second consecutive weekly decline.
Gold futures on MCX were up 0.19 per cent, or Rs 87, at Rs 46,450 per 10 gram. Silver futures gained 0.31 per cent, or Rs 191, at Rs 62,051 per kg.
The dollar held firm near a more than four-month high, hit earlier this week, underpinned by data showing US producer prices posted their largest annual increase in more than a decade.
Ravindra Rao, CMT, EPAT, VP – Head Commodity Research, at Kotak Securities said gold inched up amid choppiness in US dollar post recent gains as mixed inflation readings added to uncertainty about Fed’s monetary tightening. Rising virus cases and concerns about the health of Chinese economy are supporting prices.
“However, weighing on price is firmness in equities and lack of ETF investor buying. Gold may consolidate. However Fed’s monetary tightening debate may keep pressure on prices,” he added.
Demand for physical gold in India is still lagging. Analysts believe that the recent fall in price of the yellow metal may boost buying in the coming days.
In the spot market, highest purity gold was sold at Rs 46,531 per 10 gram while silver was priced at Rs 62,722 per kg on Thursday, 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 1,500 in the last one week. Similarly, prices of silver has declined by about Rs 5,000 during the period.
The yellow metal is fluctuating with a minor recovery from ‘flash crash’ on mixed global cues on Fed’s tapering expectations and rising Covid-19 worries including in China. The recent US CPI data and US infrastructure stimulus lent some support to ailing gold prices.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,735 and resistance at $1,765 per ounce. MCX Gold October support lies at Rs 46,000 and resistance at Rs 46,700 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was unchanged at $1,752.78 per ounce by 0101 GMT. It is down 0.5% so far for the week. US gold futures were up 0.2% to $1,754.40.
Silver rose 0.2% to $23.19 per ounce. Platinum fell 0.2% to $1,015.90 and palladium eased 0.3% to $2,616.80.