NEW DELHI: Gold prices edged lower on Tuesday, bucking the trend of gains in global markets as early taper worries eased. However, a weaker dollar capped the decline.
Gold futures on MCX were down 0.18 per cent, or Rs 84, at Rs 47500 per 10 gram. Silver futures declined 0.23 per cent, or Rs 147, at Rs 62,780 per kg.
The dollar index clawed higher after falling more than half a per cent on the previous day. The precious metal hovered above the key psychological levels on expectations that the US Federal Reserve might delay cutting back its stimulus amid rising cases of the Delta coronavirus variant.
Ravindra Rao, CMT, EPAT, VP – Head Commodity Research at Kotak Securities, said gold steadied as the US dollar index paused after yesterday’s decline. Supporting price is reduced expectations of Fed’s monetary tightening post comments from Dallas Fed President Robert Kaplan.
“Weighing on price is continuing ETF outflows and recovery in equity markets. Gold’s break above $1,800/oz shows positive momentum. However, gains may be limited,” he added.
The yellow metal has held a firm trading range despite selling in other commodities. Gold prices were supported by a weaker dollar and selling in Asian equities over economic growth worries.
The yellow metal reported a strong long run on Monday supported by dollar decline and Covid worries. Gold prices also added premium over rising virus cases in major economies which may hurt growth sentiments.
Physical gold demand moderated last week in top Asian hubs as a rebound in domestic prices and a seasonal lull slowed market activity.
In the spot market, highest purity gold was sold at Rs 47,411 per 10 gram while silver was priced at Rs 62,705 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The price of the yellow metal in spot prices are up by more than Rs 400 in the last one week, whereas silver has remained flat during the period.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,780 and resistance at $1,820 per ounce. MCX Gold October futures support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold eased 0.2% to $1,801.78 per ounce by 0100 GMT, having jumped about 1.4% in the previous session. US gold futures were little changed at $1,804.90.
Silver fell 0.5% to $23.54 per ounce, while platinum edged 0.3% higher to $1,015.92. Palladium was steady at $2,401.13, having risen 5.5% in the previous session.