NEW DELHI: Gold and silver futures were trading with gains on Friday as a softer US dollar, falling Treasury yields and a dip in equities after the US President Joe Biden’s proposal to hike capital gains tax encouraged investors to flock towards bullion.
The dollar index fell 0.1 per cent against its rivals, making gold cheaper for other currency holders. US 10-year Treasury yield ticked lower on news that Biden will propose a tax hike for high earners, to fund about $1 trillion in childcare, universal pre-kindergarten education and paid leave for workers.
“Supporting gold price is rising virus cases, choppiness in the equity market amid concerns about US corporate tax and ECB’s emphasis on continuing with loose monetary policy. However, weighing on price is the lack of ETF buying and concerns about Indian demand and improving outlook for the US economy,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Gold futures on MCX were up 0.17 per cent or Rs 81 at Rs 47,853 per 10 grams. Silver futures advanced 0.16 per cent or Rs 112 to Rs 69,330 per kg.
In the spot market, gold dipped Rs 168 to Rs 47,450 per 10 gram in the national capital on Thursday in line with weaker global precious metal prices. Silver, however, gained Rs 238 to Rs 69,117 per kg.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,770 per ounce and resistance at $1,800/$1,820 per ounce. MCX Gold June support lies at Rs 47,500 and resistance at Rs 48,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.2 per cent at $1,787.11 per ounce by 0135 GMT, after hitting its highest since Feb. 25 at $1,797.67 on Thursday. The metal has gained about 0.6 per cent so far this week. US gold futures rose 0.4 per cent to $1,788.10 per ounce.
Palladium rose by 0.1 per cent to $2,840 per ounce but was off the record $2,891.50 hit on Thursday. Many analysts expect a further run towards $3,000 per ounce as automakers ramp up purchases of the metal, worsening a supply shortage.
Silver eased 0.3 per cent to $26.10 per ounce. Platinum was little changed at $1,203.10.