NEW DELHI: Gold prices inched higher on Thursday due to a weaker dollar, while investors awaited the release of US non-farm payrolls data for April due later this week.
The US economy may be growing more quickly and unemployment falling faster than the core of Federal Reserve policymakers projected in March, Fed Governor Michelle Bowman said on Wednesday.
US private payrolls surged by the most in seven months in April as companies rushed to boost production amid a surge in demand, suggesting the economy gained further momentum early in the second quarter, powered by massive government aid and rising Covid-19 vaccinations.
The dollar hovered below a two-week high on Thursday. The index dipped 0.05 per cent. The greenback has rebounded from a one-month low over the past week, swung by US economic data that has largely supported the case for a rapid recovery from the pandemic.
Gold futures on MCX were up 0.20 per cent or Rs 92 at Rs 47,092 per 10 grams. Silver futures rose 0.23 per cent or Rs 158 to Rs 69,777 per kg.
“COMEX gold trades little changed near $1785/oz after a 0.5 per cent gain yesterday. Gold has turned choppy as mixed US economic data and mixed comments from Fed officials has clouded the outlook for Fed’s monetary policy. Also support from mixed economic data, persisting virus risks and continuing stimulus measures is countered by lack of ETF buying and concerns about Indian consumer demand,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“Gold may remain choppy as market players asses Fed’s stance but general bias is still on the upside amid persisting virus risks.”
In the spot market, highest purity gold was sold at Rs 46753 while silver was priced at Rs 68835 on Tuesday, according to the Indian Bullion and Jewellers Association.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1770 and resistance at $1800 per ounce. MCX Gold June futures support lies at Rs 46700 and resistance at Rs 47200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was down 0.1 per cent at $1,785.05 per ounce by 0126 GMT. US gold futures were steady at $1,785.10 per ounce. Investors look forward to Friday’s US monthly jobs report.
Palladium fell 0.1 per cent to $2,968.78 per ounce, after scaling an all-time high of $3,017.18 per ounce on Tuesday, driven by supply shortfalls. Silver was down 0.5 per cent at $26.37 per ounce, while platinum dipped 0.4 per cent to $1,220.16.