NEW DELHI: Gold prices were almost flat on Wednesday, as concerns over possibility of a higher US interest rates countered a subdued dollar, while palladium held firm after scaling a record high in the previous session.
The gain in US treasury yields over the comments of rate hikes from Treasury secretary Jennet Yellen pressured gold prices. However, the Fed stance is clear to keep ultra low monetary policy.
The dollar index was down 0.1 per cent against its rivals, making gold less expensive for other currency holders. Meanwhile, there are speculations that a lockdown may be imposed in India to curb the spread of the virus.
Gold futures on Multi Commodity Exchange (MCX) were up 0.20% or Rs 96 at Rs 46967 per 10 grams. Silver futures rose 0.55% or Rs 385 to Rs 70033 per kilogram.
“COMEX gold trades little changed near $1779/oz after a 0.9 per cent decline yesterday. Gold steadied as market players assessed Fed’s monetary policy stance amid mixed comments from Fed officials and US Treasury Secretary and mixed economic data. Amid other factors, support from persisting virus risks, inflation concerns and US stimulus measures is countered by weaker investor interest and concerns about Indian consumer demand.,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
“Gold may remain volatile along with US dollar however buying interest may emerge at lower levels as Fed officials may play down tightening expectations.”
In the spot market, highest purity gold was sold at Rs 46,968 while silver was priced at Rs 70,205 on Tuesday, according to the Indian Bullion and Jewellers Association.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1760 and resistance at $1800 per ounce. MCX Gold June futures support lies at Rs. 46500 and resistance at Rs. 47200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was unchanged at $1,778.53 per ounce by 0137 GMT, after falling over 1 per cent in the previous session. US gold futures rose 0.2 per cent to $1,779 per ounce.
Palladium rose 0.1 per cent to $2,985.81 per ounce, after scaling an all-time high of $3,017.18 per ounce on Tuesday. Silver was steady at $26.52 per ounce, while platinum dipped 0.2 per cent to $1,235.46.