NEW DELHI: Gold and silver futures fell up to 0.7 per cent in Wednesday’strade, ahead of a vote on a $1.9 billion stimulus in the US.
Gold futures for April delivery fell 0.25 per cent to Rs 44,744 per 10 grams. Silver futures for May delivery were trading at Rs 67,011 per kg, down 0.70 per cent.
Globally, spot gold was trading 0.1 per cent higher at $1,716.51 per ounce, after hitting its lowest since June 5 at $1,676.10 on Monday. US gold futures eased 0.2 per cent to $1,714.20. On Tuesday, the US House of Representatives voted to advance President Joe Biden’s $1.9 trillion Covid-19 relief bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass.
Chintan Haria, Head- Product Development & Strategy, ICICI Prudential AMC said that he is positive on gold on relative valuation with equities and uncertainties seen in the debt market.
“We believe, due to the ultra-loose monetary policy of global central banks, an uptick in inflation is likely due to the firming up of commodity prices. Since gold acts as a hedge against inflation, investors can consider around 10 per cent allocation to gold in their portfolio. Investors looking to increase exposure to gold can consider buying into the current correction,” Haria said.
SMC Global said the bullion counters may trade with bearish bias where gold may find support at Rs 44,300 and resistance at Rs 45,000 while silver (May) may trade with higher volatility where it may find support near Rs 66,200 and resistance near Rs 67,500.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.1 per cent to 1,061.98 tonnes on Tuesday from 1,063.43 tonnes a day earlier.