NEW DELHI: Gold prices in India bucked global trends and traded marginally lower on Monday. In the global markets, the yellow metal traded near multi-week highs on Monday after Powell’s dovish tone.
Gold futures on MCX were down 0.13 per cent, or Rs 62, at Rs 47,476 per 10 gram. However, silver futures gained marginally 0.03 per cent, or Rs 17, at Rs 64,080 per kg.
US Federal Reserve chief Jerome Powell stopped short of providing any clear guidance on a stimulus tapering timeline and boosted hopes that interest rates may remain lower for longer.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion. Dollar index slipped to a two-week low, bolstering the bullion’s appeal for those holding other currencies.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold trades near 3-week high supported by weakness in US dollar as market players played down Fed’s monetary tightening concerns post comments from Fed chairman.
“Also supporting price is increased geopolitical tensions relating to Afghanistan and mixed economic data from major economies and rising virus risks. However, weighing on price is weaker investor interest as is evident from ETF outflows,” he added.
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 47,149 per 10 gram while silver was priced at Rs 62,938 per kg on Friday, according to the Indian Bullion and Jewellers Association.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 and resistance at $1,850 per ounce. MCX Gold October support lies at Rs 47,100 and resistance at Rs 47,900 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was steady at $1,814.86 per ounce, as of 0312 GMT, after hitting its highest since Aug 4 at $1,820.50 earlier in the session. US gold futures edged 0.1% lower to $1,817.
Silver rose 0.3% to $24.07 per ounce, while platinum gained 0.3% to $1,011.23. Palladium was 0.1% higher at $2,421.49.