Gold price: Yellow metal falls marginally; silver near Rs 68,400

NEW DELHI: Gold and silver futures were trading lower on Friday tracking the economic recovery in the US and other parts of the world where vaccinations are in full swing. But the situation in India kept the losses in check.

Weighing on gold, data showed a better-than-expected rebound in US retail sales in March, while weekly initial claims for state unemployment benefits dropped to the lowest level since mid-March 2020.

Gold futures on

were down 0.13 per cent or Rs 63 at Rs 47,112 per 10 grams. Silver futures dropped 0.25 per cent or Rs 169 to Rs 68,371 per kg.

“Gold has benefitted from a decline in the US dollar index and bond yield on the back of Fed’s dovish monetary policy stance. Gold is also supported by rising virus cases and increased geopolitical tensions. However, weighing on price is upbeat US economic data and continuing ETF outflows,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

In the spot market, gold jumped Rs 159 to Rs 46,301 per 10 gram in the national capital on Thursday reflecting recovery in international precious metal prices. Silver also gained Rs 206 to Rs 67,168 per kilogram.


Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,740 and resistance at $1,785 per ounce. MCX Gold June futures support lies at Rs 46,800 and resistance at Rs 47,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold was steady at $1,763.46 per ounce by 0113 GMT. US gold futures were down 0.2 per cent to $1,763.80 per ounce.

Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, fell 0.3 per cent on Wednesday from Tuesday.

Silver was flat at $25.85 per ounce, but up for a second straight week. Palladium was steady at $2,741.84 but up about 4 per cent for the week. Platinum gained 0.5 per cent to $1,198.21.

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