Benchmark US 10-year Treasury yields dipped, buoying the appeal of zero-yield gold. However, the dollar steadied after hitting a more than one-week peak on Wednesday, making bullion less attractive for overseas buyers.
Gold futures on
were trading lower by 0.13 per cent or Rs 66 at Rs 50,799 per 10 grams. However, silver futures dropped 0.37 per cent or Rs 228 at Rs 61,352 per kg.
Bullion is considered a safe haven during times of political and economic uncertainty. However, higher short-term US interest rates increase the opportunity cost of holding gold.
In the spot market, the highest purity gold was sold at Rs 50,606 per 10 grams while silver was priced at Rs 60,811 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped below Rs 51,000 per 10 gram after three sessions, whereas silver has plunged about Rs 1,750 per kg in the same number of trading sessions.
“Gold may remain sideways to down this week on cues of stronger dollar and treasury yields. The ease in lockdown and reopening of economic activities in China also pressured the yellow metal down,” said Ravi Singh, Vice President and Head of Research, ShareIndia.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,830 and resistance at $1,860 per ounce. MCX Gold August futures support lies at Rs 50,600 and resistance at Rs 51,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was steady at $1,844.57 per ounce, as of 0305 GMT. US gold futures were down 0.1 per cent to $1,846.80.
Spot silver dipped 0.1 per cent to $21.77 per ounce, and platinum fell 0.7 per cent to $989.50, while palladium rose 0.2 per cent to $2,001.15.
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