NEW DELHI: Gold and silver futures prices gained on Monday following the international market after the lower house of the US parliament passed a massive stimulus package, which will likely lead to more inflation.
The dollar slipped from the one-week high hit in the previous session, making gold cheaper for holders of other currencies. The US House of Representatives passed a $1.9 trillion coronavirus relief package early Saturday.
Gold futures on Multi Commodity Exchange (MCX) were up 0.68 per cent or Rs 310 at Rs 46,046 per 10 grams. Silver futures dipped 1.13 per cent or Rs 778 to Rs 69,562 per kg.
“Gold prices traded steady on Monday with spot COMEX gold prices traded near $1,748 per ounce witnessing some recovery after the previous sell off. The ease in the bond market and hopes for US stimulus supported the yellow metal to trade firms. The US House of Representatives passed a $1.9 trillion stimulus package which may cap downside in gold prices,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, gold prices on Friday declined by Rs 342 to Rs 45,599 per 10 grams and silver plummeted by Rs 2,007 to Rs 67,419 per kg in the national capital, due to selling in the international market. Silver plummeted by Rs 2,007 to Rs 67,419 per kg. Trading strategies
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,710 per ounce and resistance at $1,760 per ounce. MCX Gold April futures support lies at Rs 45,600 per 10 gram and resistance at Rs 48,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC securities.
Gold edged higher on Monday, recovering from an eight-month low touched in the previous session, as a weaker dollar lifted bullion’s appeal.
Spot gold rose 0.3 per cent to $1,739.31 per ounce by 0108 GMT, after hitting its lowest since June at $1,716.85 on Friday. US gold futures gained 0.4 per cent to $1,736.10.
Physical gold demand in India gained momentum last week as retail buyers and jewellers lapped up bullion at near eight-month low prices, while Singapore continued to see steady interest for both gold and silver.
Silver gained 0.3 per cent to $26.71 an ounce, while palladium was up 1 per cent at $2,340.69. Platinum rose 1.1 per cent to $1,202.00.