NEW DELHI: Gold and silver futures were trading with cuts on Friday as higher US Treasury yields dampened the metal’s appeal, while palladium eased off a record high scale a day earlier.
Benchmark US 10-year Treasury yields rose to a more than two-week high in the previous session, increasing the opportunity cost of holding non-yielding bullion.
Gold futures on MCX were down 0.08 per cent or Rs 39 at Rs 46,664 per 10 grams. Silver futures declined 0.34 per cent or Rs 234 to Rs 68,403 per kg.
“The yellow metal pared early gains on US economic recovery with better than expected US GDP numbers. The rise in US bond yields also pressured gold prices to trade weak. The positive economic data from US and ease in lockdown measures in Europe has capped upside in gold prices,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 46,930 while silver was priced at Rs 68460 on Thursday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,750 and resistance at $1,790 per ounce. MCX Gold June futures support lies at Rs 46,400 and resistance at Rs 47,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was down 0.2 per cent at $1,767.12 per ounce by 0113 GMT, US gold futures were steady at $1,768.30 per ounce.
China’s 2021 gold demand will see annual growth and will revert to pre-pandemic levels if there are no dramatic changes to the global economic and geo-political situation, a World Gold Council (WGC) official said on Thursday.
Palladium fell 0.1 per cent to $2,947.77 per ounce, after hitting an all-time high of $2,981.99 on Thursday. The metal was still on track to post its third straight weekly gain.
Silver fell 0.6 per cent to $25.94 per ounce. Platinum was up 0.5 per cent at $1,203.59.