The gain in yields on US Treasuries after Treasury Secretary Jennet Yellen’s rate hike comments put pressure on gold prices. However, the Fed’s position is clear to maintain ultra-low monetary policy.
The dollar index fell 0.1% against its rivals, making gold cheaper for other currency holders. Meanwhile, there is speculation that a lockdown could be imposed on India to curb the spread of the virus.
MCX gold futures rose 0.20% or Rs 96 to Rs 46,967 per 10 grams. Silver futures rose 0.55 percent or Rs 385 to Rs 70,033 per kg.
“COMEX gold trading was little changed near $ 1,779 an ounce after falling 0.9% yesterday. Gold stabilized as market participants assessed the Fed’s monetary policy stance amid mixed comments from Fed officials and the US Treasury Secretary and mixed economic data. Amid other factors, support for lingering virus risks, inflation fears and US stimulus measures are being thwarted by weaker investor interest and concerns about Indian consumer demand, ”said Ravindra Rao. , vice president of commodities research at Kotak Securities.
“Gold may remain volatile against the US dollar, but buying interest may emerge at lower levels as Fed officials may downplay the tightening of expectations.”
On the spot market, the highest purity gold was sold at Rs 46,968 while silver was priced at Rs 70,205 on Tuesday, according to the Indian Bullion and Jewelers Association.
“We expect gold prices to trade sideways higher for the day with COMEX gold support at $ 1760 and resistance at $ 1800 per ounce. MCX Gold June futures support is at Rs. 46,500 and resistance at Rs. 47,200 per 10 grams, ”said Tapan Patel, senior analyst (commodities), HDFC Securities.
Spot gold was unchanged at $ 1,778.53 an ounce at 0137 GMT, after falling more than 1% in the previous session. US gold futures rose 0.2% to $ 1,779 an ounce.
Palladium rose 0.1% to $ 2,985.81 an ounce, after hitting an all-time high of $ 3,017.18 an ounce on Tuesday. Silver was flat at $ 26.52 an ounce, while platinum fell 0.2% to $ 1,235.46.