NEW DELHI: Gold moved higher on Tuesday, recovering from the scars of previous session, as rising Delta virus threat spooked investors. Both precious metals posted decent gains on .
Gold futures on MCX were up 0.38 per cent or Rs 184 at Rs 48,278 per 10 grams. Silver futures gained 0.29 per cent or Rs 196 to Rs 67,442 per kg.
Benchmark 10-year Treasury yields were pinned near five-month lows, reducing the opportunity cost of holding non-interest bearing gold. However, the US Dollar surged higher, capping the upside.
Ravindra Rao,CMT, EPAT, VP- Head Commodity Research, Kotak Securities said: “Gold trades higher supported by lower bond yields and safe haven buying amid increasing virus cases, US-China tensions and rising inflation concerns. However, weighing on price is firmness in the US dollar and weaker investor and consumer demand.”
“The yellow metal pared early losses of Monday, witnessing recovery in the evening session. The fall in US treasury yields and selling in global equity indices over virus worries boosted buying in gold,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 48,126 while silver was priced at Rs 67,790 on Monday, according to the Indian Bullion and Jewellers Association.
Bearish daily movements in the key outside markets have the metal bulls standing aside to start the trading week, as crude oil prices are sharply lower and the US dollar index is firmer.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1805 and resistance at $1833 per ounce. MCX Gold August support lies at Rs. 47900 and resistance at Rs. 48500 per 10 gram,” said Patel of HDFC Securities.
Spot gold was up 0.3% at $1,817.27 per ounce by 0311 GMT, after hitting a one-week low of $1,794.06 in the previous session. U.S. gold futures gained 0.4% to $1,816.70.
Silver eased 0.1% to $25.19 per ounce, palladium was steady at $2,593.95, and platinum rose 0.3% to $1,077.98.