NEW DELHI: Gold and silver futures prices gained on Wednesday following the trend in the international market, as the US Federal Reserve reiterated its vow to support the economy.
Federal Reserve Chair Jerome Powell in his testimony before the US Senate Banking Committee pushed back on suggestions that loose monetary policy risked unleashing inflation and financial risks in what may be an emerging economic boom.
Gold futures on MCX were up 0.05 per cent or Rs 25 at Rs 46,821 per 10 grams. Silver futures rose 0.36 per cent or Rs 250 to Rs 69,591 per kg.
“Gold prices traded firm on Wednesday morning with COMEX Spot gold prices traded near $1,810 per ounce. Gold prices pared previous losses as US bond yields came off from the highs after Fed chair Powell’s testimony. The Fed chairman reiterated to support economic recovery through loose monetary policy on the first day of his testimony,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, Gold prices on Tuesday jumped by Rs 337 to Rs 46,372 per 10 grams reflecting overnight gains in global gold prices. Silver also shoots up by Rs 1,149 to Rs 69,667 per kg.
Trading strategies
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,790 per ounce and resistance at $1,830 per ounce. MCX April futures support lies at Rs 46,500 per 10 gram and resistance at Rs 47,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC securities.
Global markets
Gold prices inched higher on Wednesday. Spot gold rose 0.2 per cent to $1,809.17 per ounce by 0111 GMT, having hit its highest since February 16 at $1,815.63 on Tuesday. US gold futures gained 0.1 per cent to $1,807.30.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 per cent to 1,110.44 tonnes on Tuesday from 1,115.4 tonnes on Monday.
Silver rose 0.4 per cent to $27.73 an ounce. Platinum climbed 1.4 per cent to $1,253.76, while palladium added 0.4 per cent to $2,360.69.