NEW DELHI: Gold and silver futures were trading higher on Thursday as a weaker dollar boosted the safe-haven metal’s appeal, while investors awaited the release of weekly jobless claims and March retail sales data in the United States later in the day.
The dollar held near a three-week low against a basket of currencies on Thursday, as US bond yields levelled off following a surge last month. A weaker dollar makes gold cheaper for buyers outside the United States.
Gold futures on MCX were up 0.35 per cent or Rs 162 at Rs 46,770 per 10 grams. Silver futures added 0.20 per cent or Rs 137 to Rs 67,775 per kg.
“Weighing on gold price is increasing optimism about the US economy and continuing ETF outflows. However, supporting price is Fed’s emphasis on keeping interest rates low and worsening virus situation. Gold is struggling to sustain above $1,750/oz amid mixed factors however rising virus cases and loose monetary policy stance may continue to support prices,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold dipped by Rs 130 to Rs 46,093 per 10 gram in the national capital on Tuesday following a decline in international precious metal prices. Silver also declined Rs 305 to Rs 66,040 per kilogram
“We expect gold prices to trade sideways to up the day with COMEX gold support at $1,725 and resistance at $1,755 per ounce. MCX Gold June support lies at Rs 46,400 and resistance at Rs 46,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.2 per cent to $1,738.96 per ounce by 0121 GMT. US gold futures were up 0.1 per cent to $1,737.90 per ounce.
Silver rose 0.5 per cent to $25.53 and palladium was up 0.3 per cent at $2,683.51. Platinum gained 0.5 per cent to $1,176.05.