New Delhi: Gold and silver continued to struggle in India’s futures market on Friday as the price for yellow metal reached one month low. On MCX, gold futures were down 0.2% to near one-month low of ₹47,498 per 10 gram while silver futures fell 0.4% to ₹66740 per kg. In the previous session, gold fell 0.6% while silver slumped 0.9%. Gold rates are down about ₹1,000 from last week’s high amid subdued global cues.
For MCX gold, support is seen at ₹46,850 while resistance at ₹48,650.
In global markets, gold rates remained weak today ahead of the US jobs data. The US dollar also edged higher after growing number of Federal Reserve officials signalled the possibility of a sooner-than-expected policy tightening. Spot gold fell 0.1% to $1,802.05 per ounce while silver was flat at $25.15 per ounce.
The dollar index was up 0.1% at 92.343, making gold more expensive for holders of other currencies.
Gold may continue to witness choppy trade as market players react to economic numbers, central bank comments as well as virus situation and development relating to China but with increasing uncertainty safe haven buying may keep prices supported, Kotak Securities said in a note.
ETF flows also remained weak, signaling jitteriness among investors. The holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to 1,027.61 tonnes on Thursday.
“Initial bias for gold likely to be on the weaker side but stiff support is placed at $1788. A direct break of which the momentum would continue in near term. Likewise it required to break above $1835 to trigger recovery rallies in the counter,” domestic brokerage Geojit said in a note.
For silver, “the inability to move past the support of $24.20 chances of recovery upticks are still on the cards. Meanwhile, an unexpected drop below that is a signal of long liquidation pressure,” Geojit added.
MCX silver has support at ₹66,800 and resistance at ₹69,200, the brokerage said.
Back in India, news reports citing sources, said gold imports in July more than doubled from a year earlier as demand perked up after states lifted lockdown restrictions.