New Delhi: The price of precious metals – Gold and silver – struggled on Monday in Indian markets , where yellow metal tumbled down ₹1,000 in 3 days while silver rates edged lower. On MCX, gold futures were slightly lower at ₹47497 per 10 gram while silver fell 0.26% to ₹68493 per kg.
In the previous two sessions, gold had fallen sharply after hitting a two-month high of ₹48,400 last week. MCX gold has support at ₹47200 – 47250, says CapitalVia Global Research, adding that if the precious metal clears 48400 levels, then it could move towards ₹49,700.
In international market, gold rates inched higher, supported by a weak US dollar. and softer US bond yields. Spot gold was up 0.1% at $1,779.36 per ounce. The dollar index was down 0.16% at 90.692, making gold less expensive for other currency holders.
As long as prices hold the support of $1760 there are chances of recovery upticks which may lead prices towards $1820 or more in the immediate future, says domestic brokerage Geojit. An unexpected drop below $1725 is a bearish signal, the brokerage added.
If the 10-year yield calms down significantly, then it is likely that the gold markets will start to strengthen again from this level, says Kshitij Purohit, Lead International & Commodity, CapitalVia Global Research Limited.
Among other precious metals, silver rose 0.2% to $26.04 per ounce while platinum was up 0.3% at $1,233.48.
Gold traders will be focusing on to the US Fed meeting later this week, with policy makers earlier reiterating that they are in no hurry to withdraw support even as the U.S. economy rebounds. Fed Chair Jerome Powell holds a press conference on Wednesday following the FOMC meeting.
Meanwhile, physical gold demand in India has been hurt by restrictions to contain the spread of COVID-19, reports said.
Equity markets in Asia were mostly higher on expectations of a faster economic recovery in many counties as vaccination gains pace. US new-home sales rebounded in March to the highest since 2006, while output at manufacturers and service providers reached a record high in April.
On Wednesday, US President Joe Biden will make his first address as president to a joint session of Congress.