NEW DELHI: Gold prices edged up on Monday, bucking the trend of mild weakness in global markets as the spread of Delta variants increased investor concerns. However, a firm dollar capped the gains.
Gold futures on MCX were up 0.13 per cent, or Rs 63, at Rs 47,221 per 10 gram. Silver futures gained 0.48 per cent, or Rs 298, at Rs 62,019 per kg.
The dollar traded near a 9-month high, denting gold’s allure for holders of other currencies.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold is supported by corrections in the US dollar index, rising virus cases, slowdown in the Chinese economy and geopolitical tensions relating to Afghanistan.
“However, weighing on price is weaker investor interest as is evident from ETF outflows and stability in equities after recent losses. Gold may continue within a narrow range amid mixed factors. However, a sharp rise is unlikely,” he added.
The yellow metal has held firm trading range despite selling in other commodities. Gold prices were supported by weaker dollar and selling in Asian equities over economic growth worries.
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 47,329 per 10 gram while silver was priced at Rs 62,233 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The price of the yellow metal in the spot prices have remained almost flat recently, whereas the silver has declined about Rs 1,100 as compared to the previous day.
“We expect gold prices to trade sideways to up for the day with COMEX gold spot prices support at $1,770 and resistance at $1,800 per ounce. MCX Gold October support lies at Rs 46,800 and resistance at Rs 47,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold fell 0.1% to $1,779.12 per ounce by 0057 GMT, while US gold futures were down 0.2% to $1,780.40.
Silver rose 0.2% to $23.05 per ounce, while platinum firmed 0.3% at $998.85. Palladium gained 1.5% to $2,307.92, having earlier hit a more than five-month low at $2,267.65.