NEW DELHI: Gold and silver futures traded flat on Thursday as support from easing US Treasury yields was offset by a strong dollar, which emerged as a preferred safe-haven amid growing concerns about extended lockdowns in Europe.
US Treasury yields dipped after the Treasury saw average demand for an auction of five-year notes, with the market appearing to stabilize after benchmark yields reached one-year highs last week.
Gold futures on MCX were up 0.05 per cent or Rs 23 at Rs 44,883 per 10 grams. Silver futures dipped 0.15 per cent or Rs 95 to Rs 65,150 per kg.
“Gold is rangebound as support from Fed’s dovish stance, mixed economic data from major economies, renewed virus concerns and retreat in US bond yields is countered by firmness in US dollar and continuing ETF outflows. Gold may remain choppy as firmer US dollar is offset by correction in yields however general bias may be on the upside on Fed’s dovish stance,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold dipped by Rs 149 to Rs 44,350 per 10 gram in the national capital on Wednesday, reflecting overnight fall in global precious metal prices. Silver also declined Rs 866 to Rs 64,607 per kg.
Trading strategy
“We expect gold prices to trade in current range with bearish bias with COMEX gold having support at $1,720 and resistance at $1,745 per ounce. MCX Gold April futures support lies at Rs 44,600 per 10 gram and resistance at Rs 45,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was little changed at $1,734.81 per ounce by 0130 GMT. US gold futures were steady at $1,732.90 per ounce.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,043.03 tonnes on Wednesday from 1,045.36 tonnes Tuesday.
Palladium fell 0.2 per cent to $2,630.32, silver rose 0.1 per cent to $25.10 and platinum was up 0.2 per cent at $1,169.96.