Analysts say gold could remain in a tight range in the short term
Back in India, gold demand was reported to be improving as the economy reopens
Gold struggled in Indian markets amid weak global cues while silver held above ₹70,000 mark. On MCX, gold futures were flat at ₹47,309 per 10 gram while silver edged up 0.35% to ₹70,425 per kg. MCX gold has resistance at ₹47,600 and support at ₹46,650, say analysts. The precious metal has struggled this year after hitting a record high of ₹56,200 last year.
In global markets, gold rates were slightly lower, weighed down by a stronger US dollar. Spot gold was down 0.1% to $1,785.41 per ounce, easing off a two-week high in the previous session. Among other precious metals, silver fell 0.2% to $26.40 per ounce while platinum eased 0.3% to $1,086.49.
"Volatility inside a tight range remains on the cards initially but gold breaking either the sides of $1745-1800 regions would suggest fresh short term direction to the commodity," says Geojit.
ETF flows into gold remained weak. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 1,042.58 tonnes on Friday from 1,043.16 tonnes on Thursday.
Back in India, as the economy reopens, gold in India last week was being sold at a premium for the first time in more than two months with demand gradually improving.
Gold traders will be watching the minutes of the Fed's last meeting which will be released on Wednesday. Also, the Group of 20 finance ministers and central bankers meet on Friday.
US jobs data released on Friday showed far more people than expected were employed last month but it also also showed the unemployment rate ticking up slightly. This eased concerns about the Fed’s hawkish pivot last month.
Technically, for silver, "inability to move past $25.20 there are chances of recovery upticks in the counter. However major rallies are denied unless breaking the resistance of $27.50. A direct drop below $25 is s a short term selling signal," says Geojit. (With Agency Inputs)