NEW DELHI: Gold was trading flat while silver posted mild gains on Friday on MCX. The yellow metal bucked global trends even as US Fed chair Jerome Powell repeated his pledge of strong support to complete US economic recovery.
Gold futures on MCX were down 0.04 per cent, or Rs 19, at Rs 48,381 per 10 gram. Silver futures gained 0.33 per cent, or Rs 230, to Rs 69,911 per kg.
Silver September futures were just shy of Rs 70,000 mark. Silver has been trading below Rs 70,000 for more than four weeks.
Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement. Hovering near a four-week high, precious metals are seeing some mild support from falling US Treasury yields.
“Spot gold prices at COMEX were trading firm. The yellow metal is on course to report its fourth straight weekly gain on central bank comments and mixed economic data. Worries over delta variant also supported gold prices this week,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Physical gold in India was sold at a discount last week as a spike in coronavirus cases prompted strict restrictions and kept buyers away. Premiums for the bullion also retreated.
In the spot market, highest purity gold was sold at Rs 48,424 while silver was priced at Rs 69,233 on Thursday, according to the Indian Bullion and Jewellers Association.
“Gold rose in intraday trade yesterday amid a weaker US dollar and softening US 10-year bond yields as uncertainty on Fed’s stance on tapering bond purchases weigh. Although the general bias is on the upside, one has to be cautious as any uptick in dollar might pressurize gold,” said Ravindra Rao of Kotak Securities.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 48,100 and resistance at Rs 48,700 per 10 gram,” said Patel of HDFC Securities.
Spot gold was flat at $1,829.14 per ounce by 0048 GMT, but gained 1.2% so far this week. US gold futures edged up 0.1% to $1,830.30.
Silver was flat at $26.32 per ounce, palladium rose 0.1% to $2,731.96, and platinum dipped 0.1% to $1,136.94.