Gold futures on
were trading lower by 0.01 per cent or Rs 4 at Rs 50,867 per 10 grams. However, silver futures were trading higher by 0.51 per cent or Rs 315 at Rs 62,108 per kg.
US Treasury yields were subdued after the benchmark 10-year note hit a fresh six-week low. Higher short-term US interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities said gold prices are supported by weakness in the US dollar and lower bond yields.
“The US dollar index has slipped to near 1-month low amid some disappointing US economic data, reduced safe-haven demand and increasing debate about Fed’s monetary stance after FOMC minutes,” he added.
Gold has come off the 2-week high set earlier this week but is consolidating in a range and this trend may continue unless there are fresh triggers, however, tightening expectations may keep pressure on prices, said analysts.
In the spot market, the highest purity gold was sold at Rs 50,945 per 10 grams while silver was priced at Rs 61,605 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have breached Rs 51,000 per 10 grams levels after a week, whereas the silver has gained more than Rs 1,650 per kg mark in the last nine sessions.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,840 and resistance at $1,870 per ounce. MCX Gold June support lies at Rs 50,600 and resistance at Rs 51,300 per 10 gram, ” said Tapan Patel, Senior Analyst (Commodities),
Spot gold held its ground at $1,848.59 per ounce, as of 0102 GMT. US gold futures were little changed at $1,846.70. For the week so far, bullion is up 0.2 per cent.
Spot silver dipped 0.2 per cent to $21.95 per ounce, and has gained about 0.9 per cent so far this week. Platinum was nearly flat at $950.28, and has slipped 0.5 per cent this week.
Palladium dipped 0.2 per cent to $2,006.47, and was set for a weekly gain of about 2.2 per cent, its most since early April.