NEW DELHI: Gold futures prices gained slightly on Thursday, but the rise was limited as rising treasury yield forced money out of the bullion. Improving economic conditions also has not helped the cause.
Inflation worries are now becoming real, after a record money printing by central banks across the world. Higher inflation boosts gold but also lifts Treasury yields, which in turn increases the opportunity cost of holding non-yielding bullion.
Gold futures on Multi Commodity Exchange (MCX) were up 0.05 per cent or Rs 24 at Rs 46,265 per 10 grams. Silver futures dipped 0.40 per cent or Rs 276 to Rs 69,000 per kg.
“Gold prices traded steady on Friday with spot COMEX gold prices were trading near $1,770 per ounce in the morning trade. The yellow metal traded under pressure with rise in US bond yields as 10 year US Treasury yields rose above 1.50 per cent to the highest level since February 2020,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, Gold prices on Thursday declined by Rs 358 to Rs 45,959 per 10 grams in the national capital, amid selling in the international markets. Silver, on the other hand, rose by Rs 151 to Rs 69,159 per kg.
Trading strategies
“We expect gold prices to trade sideways to down for the day with comex gold support at $1,760 per ounce and resistance at $1,800 per ounce. MCX Gold April futures support lies at Rs 45,800 per 10 gram and resistance at Rs 46,400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Gold inched higher after hitting a one-week low on Friday, but headed for a second straight weekly and monthly decline. Spot gold was up 0.2 per cent to $1,773.06 per ounce by 0303 GMT, having earlier fallen to its lowest since Feb. 19 at $1,764.90. Prices were down 0.6 per cent for the week and 4 per cent for the month so far. US gold futures fell 0.2 per cent to $1,771.80 on Friday.
Silver eased 0.2 per cent to $27.34 an ounce, but was poised for a third straight monthly rise, while palladium climbed 0.8 per cent to $2,420.68 and was set to register its best month in a year with a more than 8 per cent gain.