NEW DELHI: Gold and silver futures were trading with cuts on Tuesday as a firmer dollar dulled their appeal, while the market looked forward to cues from the US Federal Reserve’s policy meeting.
The dollar index edged up against its rivals, making gold more expensive for other currency holders, while benchmark US 10-year Treasury yield held close to the 1.570 per cent level.
Gold futures on MCX were down 0.10 per cent or Rs 48 at Rs 47,414 per 10 grams. Silver futures dropped 0.07 per cent or Rs 50 to Rs 68,630 per kg.
“Gold weakened today as the US dollar index tried to recover from the March low set in the previous session as market players positioned for a Fed decision tomorrow. Supporting gold price is rising virus cases, mixed economic data from major economies and loose monetary policy stance. However, weighing on price is the lack of investor buying and general progress on the vaccination front,” said Ravindra Rao, VP-Head Commodity Research, Kotak Securities.
“Gold along with US dollar and bond yields may remain choppy ahead of the Fed decision however general bias remains on the upside amid rising virus cases and hopes of loose monetary policy of major central banks.”
In the spot market, gold prices in the national capital on Monday fell Rs 81 to Rs 46,976 per 10 gram due to rupee appreciation. Silver also dipped Rs 984 to Rs 67,987 per kg.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold June support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was down 0.1 per cent at $1,777.93 per ounce by 0318 GMT. US gold futures fell 0.1 per cent to $1,778.10 per ounce.
Palladium edged 0.2 per cent lower to $2,920.78 per ounce, after hitting an all-time high of $2,941 on Monday. Silver fell 0.3 per cent to $26.12 per ounce. Platinum was down 0.4 per cent at $1,238.57.