NEW DELHI: Gold futures were trading with cuts on Wednesday, retreating from a recent high hit in the previous session, as a raft of strong US data boosted hopes of a quick economic recovery.
Gold prices are also taking a cue from the upcoming RBI policy meet outcome that is scheduled later in the day. Commentators expect the panel to keep its outlook and rates unchanged.
Gold futures on Multi Commodity Exchange (MCX) were down 0.31 per cent or Rs 144 at Rs 45,775 per 10 grams. Silver futures dipped 0.23 per cent or Rs 154 to Rs 65,743 per kg.
“Gold trades weaker amid optimism about the US economy, progress on the vaccine front and continuing ETF outflows. However, supporting price is the recent weakness in the US dollar, rising virus cases and dovish stance of the Fed and other central banks. Gold has risen sharply in the last few sessions and may see extended gains only if there are fresh dovish cues from FOMC minutes due later today,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold prices in the national capital rose by Rs 83 to Rs 45,049 per 10 gram on Tuesday following a rally in international precious metal prices. Silver also gained Rs 62 to Rs 64,650 per kg.
“We expect gold prices to trade sideways to up for the day with support at $1,720 and resistance at $1,760 per ounce. MCX Gold June futures support lies at Rs 45,500 and resistance at Rs 46,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was down 0.2 per cent to $1,739.46 per ounce by 0127 GMT. Gold futures slipped 0.1 per cent to $1,740.90 per ounce. Bullion prices had jumped on Tuesday to their highest since March 25 at $1,745.15, as US Treasury yields fell and the dollar slipped to a two-week low against a basket of currencies.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 per cent to 1,029.04 tonnes on Tuesday from 1,032.83 tonnes on Monday.
Silver fell 0.3 per cent to $25.10 and palladium was down 0.4 per cent to $2,674.91. Platinum rose 0.6 per cent to $1,240.40.