NEW DELHI: Gold prices traded higher on Thursday after the US Federal Reserve failed to give a timeline for its tapering plans. Investors cheered as the yellow metal raced past to one-week high. Silver outperformed in the bullion market.
Gold futures on MCX were up 0.39 per cent, or Rs 186, at Rs 47,763 per 10 gram. Silver futures traded with gains of 1.17 per cent, or Rs 774, higher at 67,164 per kg.
The yellow metal recovered after US Federal Reserve continued its dovish stance. The dollar index fell to two-week low as Fed indicated that a rate hike is far away.
In the spot market, highest purity gold was sold at Rs 47,761 per 10 gram, while silver was priced at Rs 66,386 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The prices of physical gold and silver have remained tepid in the last couple of weeks. The yellow metal has declined up to Rs 700, where silver has shed up to Rs 3,000 in the last two weeks.
The demand for precious metals has remained tepid in the world’s second largest bullion market. However, analysts expect that the demand is likely to move northwards in the coming weeks.
Large stimulus measures tend to support gold, which is considered a hedge against inflation and currency debasement. Powell also downplayed the risk of the spread of the Delta variant of the coronavirus on the economic recovery.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,800 and resistance at $1,833 per ounce. MCX Gold August support lies at Rs 47,300 and resistance at Rs 47,900 per 10 gram” said Tapan Patel of HDFC Securities.
Spot gold rose 0.5% to $1,815.56 per ounce by 0129 GMT, having earlier hit a peak since July 20 at $1,817.35. US gold futures climbed 0.9% to $1,815.30 per ounce.
Silver rose 0.9% to $25.15 per ounce. Palladium rose 0.6% to $2,641.69 per ounce, while platinum gained 0.8% at $1,073.42.