New Delhi: The rates of precious metals, Gold and silver, edged lower in India on Monday, tracking weak global cues. On MCX, gold futures fell 0.35% to ₹47836 per 10 gram while silver slipped 0.2% to ₹67705 per kg. In the previous session, gold fell about ₹400 or 0.75% per 10 gram while silver rates declined 0.5%.
In global markets, spot gold rates eased 0.2% to $1,809.21 per ounce after hitting a two-week high in the previous session. A stronger US dollar weighed on the precious metal after the greenback fell 0.8% last week, its worst weekly performance in over two months. On MCX, gold has support at ₹46,850 and resistance at ₹48,650, say analysts.
“If the resistance of $1835 remain caps the upside, there are chances of corrective selling pressure for the day. However, important support is seen at $1790 break of which it would continue the selling pressure in next sessions,” says Geojit in a note.
Physical gold demand was subdued in India last week as rising prices discouraged retail purchases.
“After a brief consolidation near $1800/oz level, gold has edged up gaining support from Fed’s less hawkish stance and while momentum looks positive, prices are yet to beak past the recent high of near $1835/oz. Any stability in equity market or US dollar may keep a check on upside in gold,” Kotak Securities said.
Among other precious metals, silver fell 0.4% to $25.37 per ounce while platinum gained 0.6% to $1,054.72.
“While silver prices stay above the support of $24.20 chances of recovery upticks are still on the cards. A direct drop below the same is a signal of long liquidation pressure,” says Geojit.
Also, weighing on gold, equities across Asian markets were firm today as some of the concerns over China’s regulatory crackdown eased. Progress on a $550 billion infrastructure package in US also lifted the risk sentiment.
Gold traders will be looking ahead to the US jobs data due this week. Fed officials had earlier signaled that more labor market progress is one of the keys to the timeframe for an eventual tapering in substantial stimulus support. A top Fed official last week said that the Delta covid variant, which is driving a surge in new cases in US, could keep some Americans away from looking for work, potentially harming the US recovery. (With Agency Inputs)