Gold yet again struggled in Indian markets for the fourth day in a row and remained near 8-month lows. On MCX, gold futures were up 0.12% to ₹46,297 per 10 gram while silver futures were down 0.4% to ₹68,989 per kg.
In the wake of rising US bond yields, the precious metal has now been under pressure since the start of this year. As compared to August highs of ₹56,200, gold is down about 18% or about ₹10,000.
MCX gold has support at ₹45,450 levels while resistance at ₹47,380, says Geojit in a note. On the other hand, MCX Silver has resistance at ₹72,800 and support at ₹68,400.
However, in global markets, gold prices were flat today but were on track for their second straight weekly decline as rising US Treasury yields dented the appeal of bullion which does not pay any interest.
Spot gold was flat at $1,770.15 per ounce and is on track for 0.6% decline for the week so far. * U.S. gold futures fell 0.5% to $1,767.10.
Among other precious metals, silver gained 0.3% to $27.49 an ounce, while palladium was steady at $2,400.43 and platinum rose 0.1% to $1,217.93.
”Improved economic sentiment and inflation concerns lifted US treasury yields which hit gold’s safe haven appeal and thus the price of the metal,” said Hareesh V, Research Head Commodities at Geojit Financial Services.
”As long as prices hold the support of $1760 there are chances of recovery upticks but it is required to break $1880 to extend the momentum. An unexpected drop below $1750 is an early signal of liquidation pressure,” he added.
”If silver stays above $26 it may continue with mild positive bias for the day. A direct fall below $24 could negate the outlook and take prices lower,” says Geojit.
“Investor interest remains weak as is evident from continuing ETF outflows. Gold may remain choppy amid mixed cues. However, with pressure on US dollar and Fed’s loose monetary policy stance we may see buying interest emerging at lower levels,” Kotak Securities said in a note.
