Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday following a muted trend in the international spot prices. Silver prices also declined on profit booking after a sharp rally in the previous session, analysts said.
At 10:55 am, gold futures for August delivery fell 0.21 percent to Rs 48,179 per 10 grams as against the previous close of Rs 48,281 and the opening price of Rs 48,281 on the MCX. Silver futures traded 0.40 percent lower at Rs 67,928 per kg. The prices opened at Rs 68,100 as compared to the previous close of Rs 68,200 per kg.
“The outlook for gold prices remains positive amid lower US bond yields, a weak dollar and safe-haven buying for the yellow metal. The physical demand for gold is also expected to remain strong in H2CY21. Lower US home sales data will further support the prices,” said Ajay Kedia, Director, Kedia Advisory.
A fall in the rupee amid volatility in the equity market is also lifting prices of the safe-haven metal.
“On MCX, gold prices may find support at Rs 47,900 and resistance at Rs 48,450. Support for silver is seen at Rs 67,200 and resistance at Rs 68,800,” Kedia added.
International gold was set on Friday for its best week in more than two months on renewed signs that the US Federal Reserve might not taper economic support and hike interest rates in the near term, said a Reuters report.
Spot gold was steady at $1,827.20 per ounce, having hit its highest since July 15 at $1,832.40 on Thursday. It was on track for its biggest weekly gain since May 21, having risen 1.4 percent so far. US gold futures eased 0.2 percent to $1,831.80 per ounce.
While the dollar index tried clawing up from a one-month low early on Friday, it was headed for its worst weekly performance since May. A weaker dollar boosts the appeal of gold by making it cheaper for holders of other currencies.
“Precious metal shines after some initial hesitation in the aftermath of the FOMC outcome mentioning that the central bank will not be in a hurry to back off from its overall accommodative monetary policies,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Meanwhile, holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.6 percent on Thursday, the first inflow in about a month.
“On MCX, we may see some profit booking and sideways consolidation around these pivotal levels in today’s session however it seems we are moving towards the Rs 49,000 marks in few sessions provided prices stays above Rs 48,000,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Here are gold rates across major cities:
Here are silver rates across major cities:
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First Published: IST