Gold prices today extended decline to the seventh straight day in Indian markets amid weak global cues. On MCX, gold futures were down 0.07% to ₹46,691 per 10 gram while silver rates fell 0.3% to ₹68,439 per kg.
In the previous session, gold and silver had declined 0.75% and 0.6% respectively. MCX gold faces resistance at ₹47780 and support at ₹45,760, according to domestic brokerage Geojit.
Gold has struggled this year after significant gains in 2020 as rising US bond yields have dampened the appeal of the precious metal. In August 2020, gold had hit a new high of ₹56,200 while silver had come closer to ₹80,000 per kg.
In international markets, gold rates were lower today as US 10-year Treasury yields rose to a more than two-week high on Thursday. Higher yields increase the opportunity cost of holding non-yielding bullion. Spot gold was down 0.2% at $1,767.12 per ounce.
“Expect a choppy with negative bias trading possibly inside $1800-1762 levels initially and breaking any of the sides would suggest fresh direction to gold. A direct drop below $1720 is a short term bearish signal,” Geojit said.
Data released on Thursday showed US economic growth accelerated in the first quarter, setting the course for what is expected to be the strongest performance this year in nearly four decades. This week, US President Joe Biden proposed a sweeping new $1.8 trillion plan for families and education in a speech to a joint session of Congress.
Among other precious metals, silver fell 0.6% to $25.94 per ounce while platinum was up 0.5% at $1,203.59.
Gold consumption in India is likely to falter in the June quarter amid restrictions to arrest rising COVID-19 cases, the World Gold Council (WGC) said on Thursday. Gold demand had soared in India in the March quarter on pent-up demand after weddings were delayed in 2020 due to the COVID-19 pandemic.
Gold consumption typically jumps in the June quarter due to weddings and key festivals such as Akshaya Tritiya, when buying gold is considered auspicious.