NEW DELHI: Gold prices were flat on Tuesday, hovering near a one-week peak. The yellow metal saw a surge in demand amid rising delta variants and geopolitical tension in Asia.
Gold futures on MCX were marginally up 0.01 per cent, or Rs 7, at Rs 47,232 per 10 gram. Silver futures gained 0.23 per cent, or Rs 143, at Rs 63,600 per kg.
The yellow metal extended weekly gains witnessing recovery from day’s low on the wake of disappointing economic data and worries over fast-spreading Delta variant cases. The fall in US bond yields supported the gold rally.
Ravindra Rao, CMT, EPAT, VP – Head Commodity Research at Kotak Securities, said gold is pressurized by some hawkish Fed comments, persistent strength in US equities and continuing ETF outflows.
“However, supporting gold price is disappointing US and Chinese economic data, rising virus cases and increasing tensions relating to Afghanistan. Gold may remain supported by increasing economic challenges and geopolitical risks,” he added.
Physical gold demand in Asia got a fillip last week as consumers snapped up bargains after prices dipped across regions, with premiums in top consumers India and China rebounding to multi-month highs.
In the spot market, highest purity gold was sold at Rs 46,993 per 10 gram while silver was priced at Rs 62,887 per kg on Monday, according to the Indian Bullion and Jewellers Association.
Investor focus is now on the minutes of Federal Reserve’s July meeting due on Wednesday for cues on the central bank’s stimulus tapering. Global markets also monitored turmoil in Afghanistan after the Taliban seized Kabul.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,770 and resistance at $1,800 per ounce. MCX Gold October support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was little changed at $1,787.90 per ounce by 0105 GMT, after hitting its highest since Aug 6 at $1,788.97 on Monday. US gold futures eased 0.1% to $1,788.40.
Silver rose 0.3% to $23.89 per ounce. Platinum inched up 0.1% to $1,023.52 and palladium was flat at $2,605.92.