NEW DELHI: Gold prices were trading lower on Monday amid firm US dollar and bond yields.
Gold futures on MCX declined 0.20 per cent or Rs 94 to Rs 47,358 per 10 grams. Silver was down by 0.41 per cent or Rs 247 at Rs 60,360 per kg.
Traders awaited December US inflation data that could reinforce the case for earlier-than-expected interest rate hikes by the US Federal Reserve after weaker jobs data. The hawkish Fed’s stance has underpinned demand for gold over risk-on sentiments.
Gold is considered a hedge against higher inflation, but the metal is highly sensitive to rising US interest rates which increase the opportunity cost of holding non-yielding bullion.
An uptick in retail appetite for physical gold prompted dealers in India to charge premiums last week, while upcoming Lunar New Year festivities brightened the outlook for sales in Singapore.
In the spot market, the highest purity gold was sold at Rs 47,583 per 10 grams while silver was priced at Rs 59,991 per kg on Friday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have been able to hold ground lately, whereas silver has tanked about Rs 7,000 per kg in less than two months.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,780 per and resistance at $1,810 per ounce. MCX Gold February support lies at Rs 47,200 and resistance at Rs 47,700 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was little changed at $1,795.11 per ounce by 0234 GMT, after hitting its lowest since December 16 of $1,782.10 on Friday. US gold futures were down 0.2 per cent at $1,794.00.
Spot silver was flat at $22.29 an ounce, platinum rose 0.1 per cent to $956.10, and palladium shed 0.3 per cent to $1,927.25.