Gold prices today edged higher in Indian markets after a five-day decline. Gold futures on MCX were up 0.4% to ₹47,265 per 10 gram while silver futures rose 1.1% to ₹68534 per kg.
In the previous session, gold had declined 0.42% while silver had slumped 1.75%. Last week gold rates in India had risen to two-month high of ₹48,400 and corrected thereafter following decline in international prices.
After strong gains last year during which gold had hit a new high of ₹56,200, the precious metal has struggled this year amid rising US bond yields and optimism about economic recovery as vaccinations gain pace.
In international markets, gold rates edged higher after US Federal Reserve overnight pledged to maintain easy monetary policy. The precious metal was also boosted by a weaker dollar. Spot gold was up 0.2% at $1,784.94 per ounce. The dollar index edged 0.05% lower against its rivals, boosting gold’s appeal for other currency holders.
Gold tends to benefit from widespread stimulus measures from central banks because it is viewed as a hedge against inflation. The Fed said it will continue with asset purchases and described inflation pressures as likely “transitory.”
“Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity,”.
Gold Price Analysis
“Prices will continue with mild positive bias as long as $1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $1820. A close below $1720 is a sign of immediate trend reversal.”
On the other hand, gold’s rise could be capped due to weaker investor interest and concerns about Indian demand amid higher price and virus related restrictions, say analysts.
Gold Prices Today Rise After 5-day Fall
Overnight, US President Joe Biden, in his first speech to Congress, said laid out a sweeping $1.8 trillion package for families and education.
Among other precious metals, silver gained 0.6% to $26.34 per ounce while platinum was up 0.3% at $1,222.93. On gold traders’ radar will be US GDP data due tonight.
Asian equity markets were higher today after the Federal Reserve painted a rosy picture of the US economic outlook, reiterating a pledge to stick to its guns with an ultra-low monetary policy.
- Gold Price Analysis: Gold Refreshes Weekly high above $1,780 on Biden’s ‘Joint Congress’ speech
- Gold Price Forecast: Trading Zone $1803—$1758, Focus Shifts To Fed
- Gold Premiums in India Fall Sharply as Covid Hits Retail Demand
- MCX Gold Price Target; Gold High 47832 – Neal Bhai Reports
- MCX Silver Price Target; Enjoy or Not High 68104 – Neal Bhai Reports
(With Agency Inputs)