Gold prices today edged lower in Indian markets after seeing a steep rise over the past few days. On MCX, gold futures were down 0.1% to ₹46,793 per 10 gram while silver prices dropped 0.4% to ₹67,240. Over the previous two sessions, gold had risen over ₹1,000 per 10 gram. On MCX, gold has support at ₹44,940 and resistance at ₹47,380, says domestic brokerage Geojit.
Gold rates in India have recovered in recent days, tracking firm global cues. Last week, the previous metal had dropped to one-year lows of ₹44,100.
In global markets, gold prices were steady near one-month highs amid a softer US dollar. Spot gold was steady at $1,755.91 per ounce. So far this week, gold is up 1.5%, also supported by a fall in US bond yields.
Spot gold was flat at $1,755.91 per ounce. US bond yields fell after US Fed chief Jerome Powell in a panel discussion noted that inflation pressures are likely to be temporary while reiterating that the US central bank intends to maintain its ultra-easy stance.
“Prices nearing towards the upside turnaround point of $1,760, which if broken positive momentum may continue in the counter. Meanwhile, inability to do so expect corrective selling pressure but stiff support is placed at $1680,” Geojit said.
Among other precious metals, silver rates were flat at $25.45 while platinum fell 0.3% to $1,225.95.
The US dollar today was near two-week low against a basket of currencies after the number of Americans filing new unemployment claims increased for the second straight week, last week. On the other hand, US bond yields also weakened after Powell’s dovish comments. Powell said the central bank would react if inflation expectations started “moving persistently and materially” above tolerable levels.
“The general bias for the gold however remains positive owing to rising virus concerns and loose monetary policy stance of central banks. Supporting gold price is rising virus cases which has forced countries to impose stricter restrictions hampering economic activity. Also supporting gold is loose monetary policy stance of major central banks,” Kotak Securities said in a note.