NEW DELHI: Gold prices traded flat on Friday, as an uptick in the dollar and US Treasury yields pressured bullion, while investors awaited crucial US inflation data later in the day. Gold prices were seen struggling in the domestic market as the precious metal retreated in global markets.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped more than expected last week as layoffs subsided.
Investors now await the monthly US personal consumption report due later in the day to gauge inflationary pressure. Fed officials have recently downplayed rising price pressures and affirmed their support to keep monetary policy accommodative for some time.
The dollar index was up 0.1 per cent against rivals, making gold more expensive for other currency holders. The US 10-year Treasury yield rose to 1.617 per cent, increasing the opportunity cost of holding non-interest bearing gold.
Investors at home are buying precious metal and gold ETFs. The second tranche of the sovereign gold bond scheme 2021-22 closes today for subscription. There is some volatility in gold as key readings on US inflation are awaited. The safe-haven demand will remain intact but any upbeat data point may put upward pressure.
Gold futures on MCX were down by 0.21 per cent or Rs 100 at Rs 48481 per 10 grams. Silver futures were marginally down by 0.39 per cent or Rs 280 to Rs 71,439 per kg.
“COMEX gold trades mixed near $1895/oz after a 0.3 per cent decline yesterday. Some stability in the equity market and US dollar, after recent losses has made gold vulnerable to profit taking. ETF investors have also moved to sidelines,” Ravindra Rao, CMT, EPATVP-Head Commodity Research, Kotak Securities.
In the spot market, highest purity gold was sold at Rs 48,810 while silver was priced at Rs 70,650 on Thursday, according to the Indian Bullion and Jewellers Association.
“However, supporting price is virus concerns, loose monetary policy stance of major central banks and mixed economic data from major economies. Gold may witness choppy trade however bias may be on the downside if the US dollar is able to recover.”
“We expect gold prices to trade sideways to down for the day with COMEX gold support at $1876 and resistance at $1920 per ounce. MCX Gold June futures support lies at Rs 48200 and resistance at Rs 48900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities .
Spot gold was mostly unchanged at $1,896.71 per ounce by 0054 GMT. Bullion has risen 0.8 per cent so far this week and was on track for its fourth straight weekly gain. US gold futures edged 0.1 per cent higher to $1,899.50 per ounce.
Palladium was steady at $2,806.21 per ounce, silver eased 0.1 per cent to $27.84 and platinum rose 0.1 per cent to $1,180.81.