MCX gold futures (June 4 delivery) traded 0.18 percent higher at Rs 47,086 for 10 grams at last count, after reaching as high as Rs 47,263 during the session until now.
MCX silver futures (July 5) listed at Rs 70,100, up 0.69 percent from their previous close.
The rupee gained 13 peas to end at 73.78 against the dollar, supported by the greenback’s weakness overseas.
The dollar index – which values the US currency against six peers – fell as much as 0.34 percent to 90.90 on Thursday, and was last seen at 91.05.
Spot gold was 0.23% stronger on the day at $ 1,790.84 an ounce, while silver was up 0.70% to $ 26.67 an ounce.
Analysts say weaker-than-expected services and nonfarm jobs in the United States are supporting both precious metals at lower levels, but volatility cannot be ruled out in the near term due to currency fluctuations.
Back home, spot gold was Rs 46,992 per 10 grams and silver at Rs 69,300 per kilogram, excluding GST, according to the Mumbai-based industry body IBJA.
Gains on Dalal Street kept the rise in precious metals under control. The S&P BSE Sensex and NSE Nifty 50 stock indexes extended gains to a second straight day, although investors remained cautious as they assessed vaccinations against record jumps in daily cases.
“We expect both precious metals to remain volatile ahead of the US jobless claims figures with moves expected on either side.”
The purchase of defensive products such as IT helped Sensex to finish 272.21 points, or 0.56%, up to 48,949.76 and the Nifty to 14,724.80, up 106.95 points , or 0.73%, from its previous close.
Typically, stocks share an inverse relationship with bullion, as a better appetite for risk drives investors away from safe-haven stocks.
What analysts say
“The US trade deficit hit a record high in March amid strong domestic demand, which is attracting imports, supporting metal prices,” said Navneet Damani, VP-Commodities Research, Motilal Oswal Financial Services.
He expects COMEX gold to move in a range of $ 1,765 to $ 1,810 per ounce in the short term and MCX gold between Rs 46,750 and Rs 47,320 per 10 grams.
“At MCX, gold has support at Rs 46,800-46,650 and resistance at Rs 47,180-47,440, and silver support at Rs 69,100-68,500 and resistance at Rs 69,700-71,400,” said Manoj Kumar Jain , Chief Product Research Officer, Prithvi Finmart.
Jain suggests buying gold around Rs 46,850 for a target of Rs 47,300 with a stop loss at Rs 46,640.
Market participants will be watching US non-farm employment data closely on Friday for clues.