Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday tracking weakness in the international spot prices that fell to a two-week low weighed down by a stronger dollar and a rise in bond yields on upbeat US economic data, analysts said.
At 12:00 pm, gold futures for August delivery eased 0.09 percent to Rs 48,633 per 10 grams as against the previous close of Rs 48,677 and the opening price of Rs 48,631 on the MCX. Silver futures traded 0.33 percent lower at Rs 70,573 per kg. The prices opened at Rs 70,710 as compared to the previous close of Rs 70,810 per kg.
“Stronger US dollar and higher Treasury yields are weighing on the gold and silver prices. However, inflation concerns and geopolitical tensions between US and Russia may support the yellow metal prices at lower levels,” said Ajay Kedia, Director, Kedia Advisory.
International gold slipped to its lowest in more than two weeks on Friday, weighed down by a stronger dollar, while investors awaited US non-farm payrolls data for May as bets over possible tapering of stimulus measures by the Federal Reserve loom, a Reuters report said.
Spot gold was down 0.2 percent at $1,867.47 per ounce, hitting its lowest since May 19 at $1,855.59 earlier in the session. Prices have fallen 1.8 percent so far this week. US gold futures eased 0.2 percent at $1,870.20 per ounce.
The dollar index jumped to a three-week high against its rivals, making gold more expensive for holders of other currencies, while the benchmark 10-year yield rose to 1.63 percent.
The ADP National Employment Report showed a significant increase in the US private sector hiring, lower than expected unemployment claims and expansion in the service industry signalled towards a steady recovery in the US economy.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped below 400,000 last week, while US private employers stepped up hiring in May.
Market participants will now focus on US jobs data due later in the day, for more cues on labour market recovery in the world’s biggest economy and near-term policy action from the Fed.
“On MCX, support for gold is seen at Rs 48,150 and resistance is placed at Rs 48,900. Silver may find support at Rs 69,600 and resistance at Rs 71,800,” Kedia said.
Here are gold rates across major cities:
Here are silver rates across major cities:
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