Gold rate today: Yellow metal trades higher; may face resistance at Rs 46,640 per 10 grams level

Updated : February 22, 2021 11:39 AM IST

US gold futures gained 0.4 percent to $1,784.40.

Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday tracking gains in the international spot prices amid a weak US dollar. Rally in base metals supported the silver prices, analysts said.

At 11:25 am, gold futures for April delivery rose 0.25 percent to Rs 46,314 per 10 grams as against the previous close of Rs 46,197 and opening price of Rs 46,335 on the MCX. Silver March futures traded 0.72 percent higher at Rs 69,509 per kg. The prices opened at Rs 69,337 as compared to the previous close of Rs 69,012 per kg.

“Gold prices recovered from recent lows and traded higher due to weakness in the US dollar. The yellow metal was in the technically oversold zone. United States Secretary of the Treasury Janet Yellen’s call for a large stimulus package to help speed up the economic recovery also supported the yellow metal prices. Rally in base metals helped silver trade higher,” said Ajay Kedia, director, Kedia Commodity Comtrade.

International gold prices inched higher on Monday after hitting a more than seven-month low in the previous session, as support from a weaker dollar eclipsed pressure from firmer Treasury yields.

Spot gold rose 0.1 percent to $1,783.56 per ounce, having touched its lowest since July 2 at $1,759.29 on Friday. US gold futures gained 0.4 percent to $1,784.40.

The dollar eased against rivals, making gold cheaper for other currency holders, but benchmark US Treasury yields hit a near one-year high, increasing the opportunity cost of holding non-yielding bullion.

Market participants will focus on the developments over $1.9 trillion US COVID-19 relief bill that is expected to pass by the end of the week. Federal Reserve Chairman Jerome Powell's testimony on the Semiannual Monetary Report to Congress starting Tuesday, will also be watched.

“On MCX, gold may face resistance at Rs 46,640 level, while support is seen at Rs 45,950 level. Silver may face resistance at Rs 70,800 level and support is seen at Rs 68,200 levlel,” Kedia said.

Meanwhile, selling in the domestic equity market also supported gains in precious metals.

Here are gold rates across major cities:

Source: Kedia Advisory

Here are silver rates across major cities:

Source: Kedia Advisory

(Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)

Gold rate today: Yellow metal trades higher; may face resistance at Rs 46,640 per 10 grams level

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