Gold prices rise ₹1,500 in just 5 days. Why rates are going up?1 min read . Updated: 07 Jul 2021, 10:03 AM IST
- Global gold rates remained near a three-week high, helped by a drop in US Treasury yields
Gold and silver prices were mixed today amid risk-off trade in global equity markets. Gold futures on MCX were up 0.15% to ₹47,800, extending gains to ₹1,500 in five days, while silver futures were flat at ₹69505 per kg. In the previous session, gold had surged 0.9% while silver had declined 0.6%. In global markets, gold remained near a three-week high scaled in the previous session, helped by a drop in US Treasury yields.
Spot gold was up 0.2% at $1,800.42 per ounce after it touched almost $1,815 overnight. Slight weakness in US dollar also helped the precious metal.
"As gold prices stays above $1800 expect upticks to continue but major rallies are unlikely for the day. However, if it drops below $1780 likely to trigger further weakness in the counter," says domestic brokerage Geojit. MCX gold has resistance at ₹49,300 and support at ₹47,030, it added.
Benchmark 10-year US Treasury yields were near their lowest in more than four months. Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion. The dollar index was slightly lower at 92.528, following a 0.4% gain in the previous session.
Also, supporting gold, Asian equity markets were weak today amid a risk-off trade in global markets as investors remained cautious ahead of minutes from the Federal Reserve's last meeting for clues on policy outlook.
Expectations of a hawkish tone helped the dollar rally against a basket of currencies. The dollar index was steady at 92.53 against a basket of currencies.
Among other precious metals, silver was steady at $26.14 per ounce.
"As long as $25.20 is held on the downside, recovery upticks remain on the cards for the day. Anyhow, breaking $26.80 is needed to stabilize and continue the momentum," says Geojit.
Technically, MCX silver faces resistance at ₹71,600 an has support at ₹67,800, it added.
Among other commodities, Brent crude slipped to $74.35 a barrel amid a risk-off trade.
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