Benchmark US 10-year Treasury yield was pinned below 1.6 per cent, reducing the opportunity cost of holding a non-yielding bullion. The dollar index fell 0.1 per cent against its rivals, making gold less expensive for other currency holders.
“Gold remains supported by lower bond yields, general weakness in the US dollar, worsening virus situation and rising US-Russia tensions. However, weighing on price is the lack of investor buying and concerns about India’s consumer demand owing to sharp price gains,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Gold futures on Multi Commodity Exchange (MCX) were down 0.06 per cent or Rs 28 at Rs 48,200 per 10 grams. Silver futures declined 0.03 per cent or Rs 22 to Rs 70,316 per kilogram.
In the spot market, gold in the national capital on Tuesday fell by Rs 305 to Rs 46,756 per 10 gram in line with a fall in international precious metal prices and rupee appreciation. Silver also dipped Rs 113 to Rs 67,810 per kilogram.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,785 and resistance at $1,800/1,820 per ounce. MCX Gold June support lies at Rs 47,900 and resistance at Rs 48,600 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was steady at $1,793.32 per ounce by 0244 GMT, after hitting its highest since Feb. 25 at $1,797.67. US gold futures were flat at $1,793.70 per ounce.
Palladium gained 0.1 per cent to $2,877.12 an ounce, having surged to an all-time high of $2,891.20 per ounce on Wednesday. The auto-catalyst metal has surged nearly 25 per cent since Russia’s Nornickel, the world’s largest producer of the metal, partly suspended operations at two of its mines in late February.
Among other precious metals, silver eased 0.5 per cent to $26.45 per ounce and platinum slipped 0.2 per cent to $1,211.32.