Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Wednesday as the international spot prices gained led by a fall in US bond yields, analysts said.
At 11:15 am, gold futures for August delivery rose 0.14 percent to Rs 49,194 per 10 grams as against the previous close of Rs 49,127 and the opening price of Rs 49,150 on the MCX. Silver futures traded 0.10 percent higher at Rs 71,300 per kg. The prices opened at Rs 71,356 as compared to the previous close of Rs 71,231 per kg.
International gold traded in a tight range on Wednesday as investors eyed more data on US inflation and cues on monetary policy from the European Central Bank, while weaker bond yields offered some support to the metal, a Reuters report said.
Spot gold was up 0.1 percent at $1,893.80 per ounce, while US gold futures rose 0.1 percent to $1,896.60.
US benchmark 10-year Treasury yields were hovering near more than a month's low, while the dollar index held firm.
“Gold has been consolidating around $1,900 level ahead of the taper talk and seems not in hurry to cross the $1,900 mark in the global market. The trend is bullish but the price action remains tight in congestion,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
According to Matta, the dollar is a major driver of gold and it is expected to remain week unless the Federal Reserve raises the interest rates.
“Gold on MCX was also dull and most of the time traded within the small range however showing strength as making a higher high and higher low,” Matta added.
Meanwhile, weakness in the Indian rupee amid a volatile trade in the domestic equity market supported the precious metal prices.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities said that gold and silver both are showing signs of profit-booking pressure on the daily technical chart. Traders are advised to go short near resistance levels and traders should also focus on some important technical levels.
“Support levels for gold August contract are Rs 48,850 and Rs 48650, while resistance levels are Rs 49,400 and Rs 49,800. Silver may find support at Rs 70,700 and Rs 70,000 levels and resistance at Rs 71,700 and Rs 72,400 levels,” Khare said.
Here are gold rates across major cities:
Here are silver rates across major cities:
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