NEW DELHI: Gold futures were trading with gains on Tuesday as a weaker dollar made bullion cheaper and more attractive for buyers outside the United States, while a pull-back in US Treasury yields provided further support.
The dollar slumped to an almost two-week low versus a basket of rival currencies, while US Treasury yields also fell as investors paused recent selling of government bonds. Weaker Treasury yields translate into a lower opportunity cost for holding bullion, which pays no return.
Gold futures on MCX were up 0.32 per cent or Rs 145 at Rs 45,494 per 10 grams. Silver futures added 0.63 per cent or Rs 408 to Rs 64,970 per kg.
“Gold trades higher supported by correction in US dollar index and bond yields, rising virus cases, US stimulus and rise in Indian imports. However, weighing on price is the lack of ETF buying, general progress on vaccination and increasing optimism about the US economy. Gold has bounced back from recent lows and may see some extended gains if the US dollar index remains under pressure,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, Gold was marginally lower by Rs 15 to Rs 44,949 per 10 gram in the national capital on Monday amid muted trading and tepid global trends. Silver also dipped by Rs 216 to Rs 64,222 per kilogram.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1,720 and resistance at $1,760 per ounce. MCX Gold June futures support lies at Rs 45,200 and resistance at Rs 45,900 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.3 per cent at $1,733.31 per ounce, as of 0117 GMT. Gold futures were up 0.4 per cent at $1,735.10 per ounce.
Silver rose 0.3 per cent to $24.96, while palladium was down 0.3 per cent at $2,657.66 per ounce. Platinum edged up 0.1 per cent to $1,209.76 per ounce.