Gold price today: Yellow metal edges higher but gains capped

Gold price today: Yellow metal edges higher but gains capped

NEW DELHI: Gold and silver futures traded in the green on Wednesday, bucking the trend in the international market. However, gains were capped by firm dollar, which usually makes things difficult for bullion holders.

The dollar index held firm near a three-week high against its rivals, making gold more expensive for holders of other currencies. US Treasury yields hit their highest levels since mid-July after the US Senate passed a massive infrastructure bill. Higher bond yields increase the opportunity cost of holding non-interest bearing gold.

Gold futures on MCX were up 0.18 per cent, or Rs 85, at Rs 46,047 per 10 gram. Silver futures rose 0.05 per cent, or Rs 32, to Rs 62,668 per kg.

“Gold prices kept range bound trading looking for cues from global markets. The US senate has passed a $1 trillion infrastructure plan which may land some support to the gold prices,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, highest purity gold was sold at Rs 46,220 while silver was priced at Rs 62,847, according to the Indian Bullion and Jewellers Association.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,715 and resistance at $1,750 per ounce. MCX Gold October support lies at Rs 45,600 and resistance at Rs 46,300 per 10 gram,” said Patel.

Global markets
Spot gold was down 0.2 per cent at $1,725.98 per ounce by 0048 GMT, while US gold futures fell 0.2 per cent to $1,728 per ounce.

Silver eased 0.1 per cent to $23.29 per ounce. Platinum rose 0.7 per cent to $1,001.92 and palladium was steady at $2,640.75.

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