NEW DELHI: Gold and silver futures fell on Tuesday, dragged down by gains in equity markets and the dollar, although concerns around fresh coronavirus cases across Europe limited the losses.
The dollar gained slightly, after it stumbled from four-month highs against a basket of currencies in the preceding session, in line with a dip in US Treasury yields.
Gold futures on MCX were down 0.23 per cent or Rs 104 at Rs 44,801 per 10 grams. Silver futures dropped 0.43 per cent or Rs 282 to Rs 66,049 per kg.
“Gold prices kept to narrow trading range, limiting downside which was in line with movement in US bond yields while fall in Turkish Lira capped the upside with stronger dollar. The lack of fresh triggers has kept the yellow metal volumes muted this week,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, Gold in the national capital tumbled by Rs 302 to Rs 44,269 per 10 grams on Monday, reflecting overnight decline in global gold prices and rupee appreciation. Silver also tanked Rs 1,533 to Rs 65,319 per kg.
Trading strategy
“We expect gold prices to trade sideways to down with COMEX gold support at $1,710 and resistance at $1,750 per ounce. MCX Gold April futures support lies at Rs 44,600 and resistance at Rs 45,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold fell 0.3 per cent to $1,733.69 per ounce by 0119 GMT. US gold futures were down 0.1 per cent to $1,736.20 per ounce.
Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, rose 0.3 per cent on Friday from Thursday.
Palladium rose 0.4 per cent to $2,625.52, Silver fell 0.6 per cent to $25.61 and platinum was down 0.3 per cent at $1,179.59.