Gold had jumped 1.25% while silver had surged 2% in the previous session
Gold rates in India have rebounded from one-year low levels hit last week
Gold and silver prices edged lower in Indian markets, a day after clocking sharp gains. On MCX, gold futures were down 0.33% to ₹45,767 per 10 gram while silver declined 0.28% to ₹65,715 per kg. In the previous session, gold had jumped ₹600 or 1.25% per 10 gram while silver had surged 2% or ₹1,300 per kg. In global markets, gold today edged lower after hitting a two-weak high in the previous session.
Gold prices in India have rebounded from one-year low levels of ₹44,100 hit last week, helped by a rebound in global rates and coronavirus concerns.
Spot gold was down 0.2% to $1,739.46 per ounce. The precious metal had jumped to $1,745.15 in the previous session, lifted by a fall in US Treasury yields and a softer US dollar.
"Immediate resistance of $1760 should broken to continue upticks for the day. Else, there are chances of corrective selling but stiff support is placed at $1680, breaking the same is required to extend the momentum," said domestic brokerage Geojit.
On MCX, gold faces resistance at ₹46,150 and support at ₹44,100, it said.
Among other precious metals, silver fell 0.3% to $25.10 while palladium was down 0.4% to $2,674.91.
However, ETF outflows continued to be a headwind for gold. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund or ETF, fell 0.4% to 1,029.04 tonnes on Tuesday from 1,032.83 tonnes on Monday.
A decline in US bond yields and rising Covid-19 cases around the globe has supported gold, says Kshitij Purohit, Lead – International & Commodity at CapitalVia Investment Advisor.
"Technically, international gold is trading with marginal bullish momentum. Prices are sustaining above 50-SMA. Resistance is at $1750 levels," he said.
Like gold, international silver is also trading with marginal bullish momentum and is sustaining above 50-SMA, he added.
Global stock markets today hovered near all-time highs while the US dollar and Treasury yields were steady. The investor sentiment was lifted after the IMF upgraded its global growth forecast for the second time in three months but the body warned about a divergence between advanced and lesser-developed economies. Also, the latest US labor-market data showed job openings rose to a two-year high in February.
Meanwhile, gold traders will be watching comments from US Federal Reserve Chairman Jerome Powell who takes part in a panel discussion about the global economy on Thursday. The Fed will also publish minutes from its March meeting today.