Domestic gold futures jumped to touch the Rs 47,800 per 10 grams mark on Monday as the yellow metal scaled a seven-week peak overseas on a weaker dollar and lower US Treasury yields, which boosted its safe-haven appeal.
Gold futures trading on MCX for June 4 delivery quoted at Rs 47,806 per 10 grams at the last count, up Rs 453 or 0.96 per cent from their previous close. The contract gained by Rs 479 to touch Rs 47,832 at the strongest level of the day so far.
Silver followed suit and recovered early losses to quote at Rs 69,215 per kilogram on the bourse, up Rs 531 or 0.77 per cent from the previous close.
In the international market, spot gold climbed up to $1,789.88 per ounce, its highest level recorded since February 25. Silver was up 0.70 per cent at $26.15 per ounce.
Back home, gold and silver of 99.9 per cent purity stood at Rs 47,555 per 10 grams and Rs 68,481 per kilogram in the spot market, respectively, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA). Both prices exclude GST.
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What analysts say
“On the physical side, we might see some dull response in the purchase of the metal on domestic front amidst the elevated domestic prices and renewed coronavirus restrictions due to a surge in infections,” said Navneet Damani
VP-Commodities Research, Motilal Oswal Financial Services.
“Although, higher import numbers from India as well as China has given a boost to the overall sentiment,” he added.
Damani expects a broader range of $1,775-1,805 per ounce on COMEX gold (Rs 47,500-48,100 per 10 grams in domestic rates) in the near term.
MCX gold has support at Rs 47,100-46,920 and resistance at Rs 47,550-47,800, and silver at 68,100-67,700 and Rs 69,100-70,000, respectively, said Manoj Kumar Jain, Director-Head of Commodity Research, Prithvi Finmart.
He recommends taking a long position in gold around Rs 47,150 for a target price of Rs 47,700 with a stop loss at Rs 46,920. In silver, he suggests going long around Rs 68,200 for a target of Rs 69,500 with a stop loss at Rs 67,500.
Meanwhile, the rupee was last seen trading 30 paise or 0.41 per cent lower at 74.83 against the dollar, despite weakness in the greenback overseas.
The dollar index — which gauges the American currency against six peers — languished near a one month low, whereas benchmark US 10-year Treasury yields edged lower.
Market participants will closely monitor PMI data from major economies scheduled this week.