Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Thursday tracking a muted trend in the international spot prices amid an uptick in the dollar index. Increased investors’ risk appetite is also weighing on the yellow metal prices, analysts said.
At 10:40 am, gold futures for August delivery eased 0.10 percent to Rs 49,552 per 10 grams as against the previous close of Rs 49,601 and the opening price of Rs 49,612 on the MCX. Silver futures traded 0.02 percent lower at Rs 72,660 per kg. The prices opened at Rs 72,835 as compared to the previous close of Rs 72,678 per kg.
International gold prices inched lower on Thursday as a slight uptick in the dollar offset support from lower Treasury yields, while investors awaited key US economic readings this week for more clarity on monetary policy, said a Reuters report.
Spot gold was down 0.2 percent at $1,904.36 per ounce. On Tuesday, gold prices hit their highest level since January 8 at $1,916.40. US gold futures eased 0.1 percent to $1,907.70 per ounce.
The US Labor Department is expected to release initial weekly jobless claims data later on Thursday, followed by non-farm payroll numbers on Friday.
The US 10-year Treasury yield slipped below 1.60 percent, reducing the opportunity cost of holding non-interest bearing gold. The dollar index, however, edged 0.1 percent higher against its rivals, making gold less appealing for other currency holders.
“Overall sentiments for precious metals remain firm after the Federal Reserve released its Beige Book, which said the US economy increased at a somewhat faster rate from early April to late May,” said Ajay Kedia, Director, Kedia Advisory.
Meanwhile, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 percent to 1,041.75 tonnes on Wednesday.
“On MCX, gold looks firm as long as prices are holding above Rs 48,900 levels as support while resistance will be Rs 49,980 levels. Silver looks firm as prices are very well placed above Rs 71,600 level which is today’s support while resistance will near Rs 73,850 levels,” Kedia said.
Further, weakness in the Indian rupee may support the yellow metal prices at lower levels.
Here are gold rates across major cities:
Here are silver rates across major cities:
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