NEW DELHI: Gold prices bucked the global trend in India and opened lower on MCX on Friday. Gold futures on MCX were down merely 0.08 per cent, or Rs 39, at Rs 48,357 per 10 gram. Silver futures traded lower by 0.21 per cent, or Rs 145, higher at 68,055 per kg. The precious metal has remained bullish outside India.
In global markets, gold prices were on track for their biggest weekly gain in more than two months on renewed signs that the US Federal Reserve may not taper economic support and hike interest rates in the near term.
While the dollar index tried clawing up from a one-month low early on Friday, it was headed for its worst weekly performance since May. A weaker dollar boosts the appeal of gold by making it cheaper for holders of other currencies.
COMEX gold was trading marginally lower. “However, supporting price is disappointing US economic data, Fed’s less hawkish stance, rising virus concerns and a pick up in ETF investor buying. The general momentum has turned positive for gold amid Fed’s stance. However, any stability in equities may limit any major upside in prices,” Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said.
In the spot market, highest purity gold was sold at Rs 48,358 per 10 gram while silver was priced at Rs 67,881 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
After a prolonged flat movement, the prices of physical gold and silver moved sharply up on Thursday. The yellow metal gained up to Rs 600 per 10 gram while silver soared Rs 1,500 per kg.
The World Gold Council said the global demand for gold was yet to recover from the pandemic. WGC said gold demand during the first half of 2021 was the lowest since 2008.
“We expect gold prices to trade sideways to up with COMEX Spot gold immediate resistance at $1,833, above which prices may touch $1,840 per ounce with support at $1,815 per ounce. MCX Gold August support lies at Rs 47,900 and resistance at Rs 48,600 per 10 gram, ” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was steady at $1,827.28 per ounce by 0256 GMT, having hit its highest since July 15 at $1,832.40 on Thursday. It was on track for its biggest weekly gain since May. US gold futures eased 0.2% to $1,832.00 per ounce.
Silver was flat at $25.53 per ounce but was headed for its first weekly gain in four weeks. Palladium rose 0.3% to $2,652.71 per ounce, while platinum dropped 1% to $1,050.06.