NEW DELHI: Gold prices in India edged lower on Wednesday, following global trends after a 20.1 per cent jump in India’s GDP in June 2021 quarter. Investors await a key US jobs report for clues on when the Federal Reserve might start reducing its pandemic-era stimulus measures.
Gold futures on MCX were marginally down 0.06 per cent, or Rs 30, at Rs 47,090 per 10 gram. However, silver futures declined 0.35 per cent, or Rs 221, at Rs 63,145 per kg.
The dollar index inched up, but hovered closer to a more than three-week low hit on Tuesday. Gold is considered a hedge against inflation and currency debasement, which can be caused by massive stimulus measures.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said traders are eyeing key US job market data this week which may indicate Fed’s mood over asset tapering.
Physical gold demand in India was subdued last week as jewellers held off purchases, hoping for a dip in prices, but top consumer China saw a slight uptick in activity.
In the spot market, highest purity gold was sold at Rs 47, 239 per 10 gram while silver was priced at Rs 63,402 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has increased about Rs 500 in the last one week, whereas silver has remained flat, marginally lower, during the period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,795 and resistance at $1,833 per ounce. MCX Gold October support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” added Patel of HDFC Securities.
Spot gold was steady at $1,814.01 per ounce by 0343 GMT, while US gold futures eased 0.1% to $1,816.00.
Silver fell 0.2% to $23.85 per ounce, while platinum eased 0.3% to $1,009.88. Palladium rose 0.3% to $2,475.25.