NEW DELHI: Gold prices traded firm on Wednesday as a fall in US bond yields and weaker dollar boosted buying from support levels. Although progress in peace talks between Russia and Ukraine kept upside capped.
Gold futures on MCX were trading up 0.45 per cent or Rs 229 at Rs 51,518 per 10 grams. Silver futures were trading higher by 0.21 per cent or Rs 138 at Rs 67,085 per kg.
“Gold prices continue to be in correction mode this week also on the hope of peace talks between Russia and Ukraine. However, the new lockdown imposed in China on a possible outbreak of new variant may keep gold volatile,” said Ravi Singh, Vice President and Head of Research, ShareIndia.
The dollar index slid to a more than one-week low, making gold less expensive for other currency holders. US benchmark 10-year yields also slipped from near three-year highs, decreasing the opportunity cost of holding non-yielding bullion.
In the spot market, the highest purity gold was sold at Rs 51,347 per 10 grams while silver was priced at Rs 66,933 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained below Rs 52,000 per 10 grams in the last 15 days, whereas silver breached Rs 67,000 per kg levels for the first time in more than a month.
Trading strategy
“We expect Gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,890 and resistance at $1,940 per ounce. MCX Gold June support lies at Rs 50,800 and resistance at Rs 51,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was up 0.3 per cent to $1,923.95 per ounce by 0210 GMT. US gold futures rose 0.5 per cent at $1,927.70. The metal fell as much as 1.8 per cent on Tuesday to its lowest since February 28 at $1,889.45.
Spot silver was up 0.1 per cent at $24.78 per ounce and platinum rose 0.9 per cent to $991.49. Palladium gained 1.5 per cent to $2,182.15, after dipping to a more than the two-month low of $2,032.97 in the last session.