From August highs, gold is still down about ₹11,000 per 10 gram
Gold prices are supported by the pullback in US dollar and treasury yields from recent highs.
Gold and silver prices edged higher today in Indian markets, tracking positive global cues. On MCX, June gold futures were up 0.35% to near one-month high of ₹45503 per 10 gram while silver rose 0.6% to ₹64,943 per kg. In the previous session, gold and silver had dropped 0.15% and 0.9% respectively. Gold has been trading in a range of ₹45,700 to ₹44,100 over the past one month.
Despite the recent pullback in gold prices, the precious metal is down about ₹11,000 from its August highs of ₹56,200. And from the start of this year, it is off about ₹5,000. Expectations of a faster global recovery amid vaccine rollouts and firming US bond yields have put pressure on precious metal. Last week, gold prices fell to ₹44,100, its lowest level since April 2020.
MCX gold has support at ₹44,100 while faces resistance at ₹46,150.
In global markets, gold edged higher, supported by a weaker US dollar and a pullback in US Treasury yields. Spot gold was up 0.3% at $1,733.31 per ounce.
"Intraday upticks for gold are in cards as long as $1680 hold the downside. However, a direct break of $1760 is required to trigger major rallies in the counter. Further weakness is seen only a close below $1660," Geojit said in a note.
The dollar slumped to an almost two-week low versus a basket of rival currencies, while U.S. Treasury yields also fell as investors paused recent selling of government bonds. The US dollar and treasury yields pulled back from recent highs. Softer yields means lower opportunity cost for holding gold, which pays no interest.
Among other precious metals, silver rose 0.3% to $24.96, while palladium was down 0.3% at $2,657.66 per ounce.
"Silver prices are required to break above $25.20 to continue rallies towards $26.50 or more. Else, expect a choppy with mild negative bias trading for the day. Major weakness is seen only a break of $23.80," Geojit said.
MCX silver has resistance at ₹66250 and support at ₹62,220, the brokerage said.
Gold traders will be keeping a watch on the 2021 Spring Meetings of the International Monetary Fund and the World Bank Group which takes place virtually. Federal Reserve Chairman Jerome Powell will participate in a panel discussion about the global economy on Thursday while US Treasury Secretary Janet Yellen is among the participants of a climate discussion today. The US Fed will also publish its minutes from its March meeting on Wednesday. (With Agency Inputs)