Gold rate today: Yellow metal trades flat; support seen at Rs 47,480 per 10 grams

Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Friday despite a positive trend in the international spot prices. At 11:10 am, gold futures for June delivery eased 0.21 percent to Rs 47,672 per 10 grams as against the previous close of Rs 47,772 and opening price of Rs 47,885 on the MCX. Silver futures traded 0.48 percent lower at Rs 68,885 per kg. The prices opened at Rs 69,300 as compared to the previous close of Rs 69,218 per kg.

“The sentiment for gold prices still remains bullish on a weak US dollar index and lower treasury yields. Concerns over rising coronavirus cases and hopes of stimulus after the ECB meeting are also supporting the yellow metal,” said Ajay Kedia, director, Kedia Advisory.

International gold rose on Friday and was set to post a third straight weekly gain after US President Joe Biden’s proposal to hike capital gains tax weighed on US Treasury yields, while a weaker dollar also bolstered the metal’s appeal, said a Reuters report.

Spot gold was up 0.2 percent at $1,786.87 per ounce. The metal jumped to its highest since February 25 at $1,797.67 on Thursday and has added about 0.6 percent so far this week. US gold futures rose 0.3 percent to $1,786.90 per ounce.

“Gold prices have seen a big upmove. Some of the factors supporting gold have been the rising COVID cases, inflation concerns as well as physical buying. The yellow metal prices have bottomed out and the near-term resistance is seen at USD 1,860 per ounce,” said David Fergusson, Chairman, Global Precious Metals.

Gold prices may touch USD 3,000/ounce: Global Precious Metal's David Fergusson

Meanwhile, US President Joe Biden may roll out a plan to raise taxes on the wealthiest Americans, including the largest-ever increase in levies on investment gains, to fund about $1 trillion in childcare, universal pre-kindergarten education & paid leave for workers.

The proposal is attracting bond investors and the US 10-year Treasury yield have dropped, supporting the precious metal prices.

On the domestic front, Kedia said that the gold prices may remain bullish on worries over economic growth as the coronavirus crisis gets worsens in India.

Further, weakness in the rupee further supports the gold prices. The Indian rupee opened lower at 75.02 per dollar against the previous close of 74.95, amid selling in the domestic equity market.

“On MCX, support for gold is seen at Rs 47,480 and resistance at Rs 48,150. Silver may witness support at Rs 68,200 and resistance at Rs 70,500,” Kedia added.