NEW DELHI: Gold edged up a little on Wednesday in the domestic market, after slipping in the previous session. The yellow metal held steady in global markets as gains in the dollar and a rise in US Treasury yields hurt the bullion’s appeal.
Gold futures on MCX were up 0.10 per cent, or Rs 45, at Rs 46,984 per 10 gram. Silver futures marginally declined 0.01 per cent, or Rs 7, at Rs 64,614 per kg.
Gold prices traded under pressure with a stronger dollar and rise in US bond yields. The dollar index rose to one-week high while US Treasury yield also rose. Market players will look for the Fed’s Beige Book to get clues on the growth of the US economy.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold corrected sharply from its recent highs amid gains in US dollar, higher bond yields and sharp rise in Chinese equities.
“However, supporting price is geopolitical tensions, persisting virus risks and uneven global economic recovery and cautious stance of major central banks. Gold has come off recent highs amid dollar gains. However, growth worries and cautious tone of central banks may continue to support prices,” he added.
Physical gold demand across top Asian markets has remained tepid recently, while dealers in India are hopeful on an upcoming festival season to bring in more customers.
However, India’s gold imports in August nearly doubled from a year earlier on strong demand and as weaker prices prompted jewellers to ramp up purchases in the coming season.
In the spot market, highest purity gold was sold at Rs 47,399 per 10 gram while silver was priced at Rs 64,135 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained about Rs 100 per 10 gram in the last one week, whereas silver has eased more than Rs 1,050 during the period under review.
“We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1,790 and resistance at $1,815 per ounce. MCX Gold October support lies at Rs 46,700 and resistance at Rs 47,200 per 10 gram” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.1% to $1,796.03 per ounce by 0116 GMT, hovering slightly above the more than one-week low of $1,791.90 hit on Tuesday. US gold futures were steady at $1,799.40.
Silver rose 0.1% to $24.32 per ounce, platinum edged 0.3% higher to $1,001.36 and palladium was up 0.2% to $2,376.37.