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Gold rates today rose to  ₹46,340 per 10 gram. A model poses for photographs during inauguration of a jewellery exhibition.
Gold rates today rose to 46,340 per 10 gram. A model poses for photographs during inauguration of a jewellery exhibition.

Gold prices today remain near 8-month lows, down 10,000 from record highs

  • Gold edged higher today but gains remained capped due to rise in US bond yields
  • In the previous session, gold had hit a eight-month low

Gold and silver prices today edged higher in Indian markets, tracking higher global rates. On MCX, gold futures rose 0.3% to 46,340 per 10 gram, after sliding to eight-month lows of 45,861 in the previous session. Silver futures on MCX jumped 0.8% to 69590. At MCX, gold April prices have near term resistance at Rs. 46800 per 10 gram and support at 45600 per 10 gram, HDFC Securities said.

In global markets, gold prices edged higher after hitting a seven-month low in the previous session. Gold drew support from a softer US dollar, making gold affordable for holders of other currencies. But the gains were capped as US Treasury yields continued to rise. Spot gold rose 0.3% to $1,787.31 per ounce. The dollar eased against rivals. US Treasury yields hit a near one-year peak, increasing the opportunity cost of holding gold, which pays no interest.

"Gold slightly recovered from a seven-month low on weak US currency and fiscal stimulus hopes from the world’s largest economy. Meanwhile, higher U.S treasury yields and expectations over a swift global economic turnaround capped major gains in bullion," said Hareesh V, Research Head Commodities at Geojit Financial Services.

"As long as prices hold the support of $1760 there are chances of recovery upticks but it is required to break $1880 to extend the momentum. An unexpected drop below $1750 is an early signal of liquidation pressure," he added.

Among other precious metals, silver gained 1.3% to $27.56 an ounce while platinum rose 1.7% to $1,295.94, while palladium climbed 1.6% to $2,415.38.

The sharp correction in gold prices from August highs of 56,200 has boosted physical demand in India, Reuters reported.

Among other metals, copper today rallied above $9,000 a ton, a nine-year high, on bets that recovery from the pandemic will drive demand in the industrial metal.

Analysts say that vaccination drive, the rise in US bond yields and the rally in equities have exerted downside pressure on gold prices.

However, they say that supportive factors like continued loose monetary policy and low real interest rates this year and fear of inflation will lead to value-buying at lower levels.

(With Agency Inputs)

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