Silver and gold prices today edged higher in Indian markets, tracking a similar global trend. On MCX, gold futures were up 0.4% to ₹44,915 per 10 gram while silver rose 0.6% to ₹67,273 per kg.
In the previous session, gold had hit a near one-year low when it touched ₹44,271 per 10 gram at session’s low. Gold MCX has support at ₹44,600 and resistance at ₹45,200. On the other hand, silver has downside support at ₹66,000 levels and resistance at ₹68,200 level, he added.
Gold prices today Up but down ₹11,500 from Record highs
In global markets, gold rates were marginally higher at $1,728.43 an ounce as the passage of a US stimulus bill raised concerns over inflation risks. However, higher US bond yields, which hovered near their highest in more than a year, capped the precious metal’s gains. Gold is typically considered a hedge against inflation but higher bond yields increase the opportunity cost of holding non-yielding bullion.
Meanwhile, outflows from ETFs continued, putting pressure on gold. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, said its holdings fell 0.3% to 1,052.07 tonnes on Friday from 1,055.27 tonnes on Thursday.
Among other precious metals, silver rose 0.9% to $26.14, platinum rose 1% to $1,217.37, while palladium fell 0.1% to $2,369.17.
Gold traders will be closing watching the outcome of key central bank policy meets later in the week, including the US Federal Reserve’s. Bank of England’s rate decision is due on Thursday while Bank of Japan monetary policy decision is slated for Friday.
“Gold also benefitted from progress on US stimulus measures as President Joe Biden signed into law a $1.9 trillion stimulus package. However, weighing on gold price is weaker investor interest as is evident from continuing ETF outflows. Also weighing on gold price is general improvement in global economic outlook on back of improving virus situation as well as progress on vaccine front. Also weighing on price is general strength in equity markets which reflects improving economic outlook,” Kotak Securities said in a note.
Gold has recovered from recent lows but with mixed factors in place choppy trade is likely, the brokerage added.
As prices corrected to near one-year lows, news agency Reuters reported that jewellery buying gained momentum in India. This allowed dealers to charge higher premiums over official rates last week. Jewellers also replenished inventory in anticipation of higher demand.