NEW DELHI: Gold prices moved higher marginally on Thursday, after a fall during the previous session. The yellow metal was supported by a pullback in US bond yields.
Investors looked forward to key central bank meetings for clues on whether they would consider tightening monetary policy earlier than thought. Market participants also await the US Federal Reserve policy meeting on November 3.
Gold futures on MCX were trading marginally higher by 0.08 per cent, or Rs 40, at Rs 48,002 per 10 gram. Silver futures were flat, down 0.37 per cent or Rs 242 at Rs 64,923 per kg.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion.
Gold prices traded firm on Thursday as the yellow metal recovered with a fall in US bond yields. The 10-year US Treasury yields fell on Wednesday, ahead of ECB policy decision later in the day.
Ravi Singh, Vice President & Head of Research, Share India, said the gold market is moving sideways as traders are awaiting the outcome of central banks meeting scheduled this week and next week.
“The latest corona delta outbreak in China and few other countries is expected to worsen in coming days. The fear may trigger an upward move in gold which may continue till the festival season ends,” he added.
Global demand for gold fell in the third quarter to its lowest since the last quarter of 2020 as investors sold the metal.
In the spot market, highest purity gold was sold at Rs 47,903 per 10 gram while silver was priced at Rs 64,574 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained over Rs 500 per 10 gram in the last two weeks, whereas silver has jumped about Rs 2,500 per kg during the period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,785 and resistance at $1,812 per ounce. MCX Gold December support lies at Rs 47,600 and resistance at Rs 48,200 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.1% at $1,799.13 per ounce, as of 0208 GMT. U.S. gold futures were flat at 1,799.50.
Spot silver was steady at $24.04 per ounce. Platinum gained 0.2% to $1,012.13 and palladium rose 0.4% to $1,971.19.