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Gold price today: Yellow metal choppy, silver slips below Rs 71,500

Gold price today: Yellow metal choppy, silver slips below Rs 71,500

07 Jun 2021

NEW DELHI: Globally, gold prices edged lower on Monday as an uptick in the dollar dented the metal’s appeal. although lower US bond yields and prospects of a prolonged accommodative interest rate environment limited losses. Spot gold was down 0.2 per cent at $1,886.76 per ounce as of 0308 GMT, after rising more than 1 per cent in the previous session, as US May non-farm payrolls fell short of expectations. The yellow metal, traded choppy in the domestic market while silver slipped below Rs 71,500.

According to the Indian Bullion and Jewellers Association, highest purity gold was sold at Rs 48,578 while silver was priced at Rs 70,167 in the spot market, on Friday.

The dollar index dropped from a three-week high against its rivals, making gold less expensive for holders of other currencies. The benchmark 10-year yield slipped below 1.6 per cent and was hovering near a one-week low, reducing the opportunity cost of holding non-interest bearing gold.

Last week, Indian gold dealers had offered the biggest discounts in almost nine months as virus-related restrictions stifled consumption. With many states announcing unlocking process in a phased manner, retail demand is expected to pick up in India.

Gold futures on MCX shed merely 0.03 per cent or Rs 15 at Rs 48,979 per 10 grams. Silver futures fell 0.27 per cent or Rs 192 to Rs 71,347 per kg.

“COMEX gold traded marginally lower near $1889/oz after a 1 per cent gain on Friday. Gold is volatile as market players assess Fed’s monetary policy stance in light of mixed US non-farm payrolls data,” Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities.

“ETF inflows showed pick up in investor interest late last week. However, this is countered by weaker demand in India amid virus related restrictions. Gold may remain choppy along with the US dollar as market players assess the implication of jobs report on Fed’s monetary policy.”

Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1870 and resistance at $1900 per ounce. MCX Gold August support lies at Rs. 48800 and resistance at Rs. 49300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Silver eased 0.1 per cent to $27.74 per ounce, palladium dipped 0.2 per cent to $2,838.92, while platinum rose 0.6 per cent to $1,169.36.