NEW DELHI: Gold and silver futures prices in the domestic market gained on Wednesday as a rally in the US dollar took a pause making precious metals attractive. Unabated rise in infections also helped the cause.
Benchmark 10-year Treasury yields pulled back from 10-month highs, dragging the dollar lower and making gold cheaper for other unit holders. Global coronavirus infections rose to more than 91 million, with several Asian and European countries enforcing stricter restrictions to curb the spread of the virus.
Gold futures on MCX were up 0.71 per cent or Rs 348 at Rs 49,393 per 10 grams. Silver futures slipped 0.52 per cent or Rs 345 to Rs 66,251 per kg.
“COMEX gold trades about 0.9 per cent higher near $ 1,961/oz after a 0.4 per cent decline yesterday. Gold trades higher supported by retreat in the US dollar index after recent gains. Also supporting the price is hopes of higher US stimulus, rising virus cases and impeachment proceedings against US President Trump,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“However, weighing on price is the lack of ETF buying and progress on vaccination. Gold may remain choppy amid lack of fresh triggers however general bias may be on the upside owing to increased stimulus expectations.”
In the spot market, gold prices in the national capital jumped for the second consecutive day on Tuesday gaining Rs 297 to Rs 48,946 per 10 gram, in line with rally in international precious metal prices. Silver also gained Rs 1,404 to Rs 65,380 per kg.
“Gold prices are expected to trade sideways to up for the day. COMEX gold has important resistance at $ 1,875 per ounce and support at $ 1,830 per ounce. MCX Gold February futures support lies at Rs 48,800 and resistance at Rs 49,600 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Gold prices edged up on Wednesday as the dollar pulled back. Spot gold rose 0.2 per cent to $ 1,858.56 per ounce by 0255 GMT, while US gold futures gained 0.9 per cent to $ 1,860.10.
Silver dipped 0.2 per cent to $ 25.51 an ounce. Platinum rose 0.3 per cent to $ 1,079.21, while palladium eased 0.2 per cent to $ 2,388.78.