Gold price today: Yellow metal shows mild gains, silver tops Rs 70,000

Gold price today: Yellow metal shows mild gains, silver tops Rs 70,000

NEW DELHI: Gold prices were subdued on Monday after hitting a two-week high, weighed down by a slight uptick in the dollar. The yellow metal posted tepid gains in the domestic markets.

US companies hired the most workers in 10 months in June, raising wages and offering incentives to entice millions of unemployed Americans sitting at home. Investors are awaiting more US economic data for clues on the Federal Reserve’s monetary policy plans.

A stronger-than-expected U.S. employment report is strengthening investors’ focus on economic data and the Fed’s next move. The dollar ticked up 0.1 per cent against its rivals, making gold expensive for holders of other currencies.

Gold in India last week was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed.

Gold futures on MCX were up 0.05 per cent or Rs 25 at Rs 47,310 per 10 grams. Silver futures gained 0.30 per cent or Rs 209 to Rs 70,397 per kg.

“COMEX gold trades modestly higher near $1789/oz after a 0.4 per cent gain on Friday. Gold has inched up as mixed US non-farm payrolls data has brought a halt to the US dollar’s rise. Renewed virus concerns have also increased gold’s safe haven appeal,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

In the spot market, highest purity gold was sold at Rs 47,263 while silver was priced at Rs 69,160 on Thursday, according to the Indian Bullion and Jewellers Association.

“However, weighing on price is weaker investor interest and Fed’s monetary tightening expectations. Gold has edged up on mixed US jobs report however upside remains restricted by persisting worries about Fed’s monetary tightening.”



Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1770 and resistance at $1800 per ounce. MCX Gold August support lies at Rs. 47000 and resistance at Rs. 47600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold was down 0.1 per cent to $1,785.41 per ounce by 0037 GMT, after hitting its highest since June 18 at $1,794.86 on Friday. U.S. gold futures rose 0.1 per cent to $1,785.20.

Silver fell 0.2 per cent to $26.40 per ounce, palladium gained 0.3 per cent to $2,793.19 and platinum shed 0.3 per cent to $1,086.49.

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