Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Monday following a muted trend in the international spot prices after an uptick in the US dollar.
At 10:50 am, gold futures for August delivery fell 0.22 percent to Rs 48,885 per 10 grams as against the previous close of Rs 48,994 and the opening price of Rs 48,947 on the MCX. Silver futures traded 0.57 percent lower at Rs 71,133 per kg. The prices opened at Rs 71,320 as compared to the previous close of Rs 71,539 per kg.
“Gold prices eased after a rise in US dollar. However, gold is expected to trade sideways to positive going ahead as the fundamentals look supportive. Hence, the decline in the prices would be used as a buying opportunity,” said Ajay Kedia, Director, Kedia Advisory.
International gold prices edged lower on Monday as an uptick in the dollar dented the metal’s appeal, although lower US bond yields and prospects of a prolonged accommodative interest rate environment limited losses, said a Reuters report.
Spot gold was down 0.2 percent at $1,886.76 per ounce as, after rising more than 1 percent in the previous session, as US May non-farm payrolls fell short of expectations. US gold futures eased 0.1 percent to $1,889.60 per ounce.
The dollar index rose 0.1 percent against its rivals, making gold more expensive for holders of other currencies.
Meanwhile, a weaker-than-expected US monthly jobs report calmed investor fears about the tightening of monetary policy by the Federal Reserve. Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
The benchmark 10-year yield slipped below 1.6 percent and was hovering near a one-week low.
Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.1 percent to 1,043.16 tonnes on Friday. Speculators raised their net-long positions in COMEX gold in the week ended June 1.
“On MCX, gold may find support at Rs 48,880 and resistance at Rs 49,150. Support for silver is seen at Rs 70,600 and resistance is placed at Rs 72,200,” Kedia added.
Meanwhile, strength in the Indian rupee amid buying in domestic equity markets weighed on precious metal prices.
Here are gold rates across major cities:
Here are silver rates across major cities:
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