gold price today: Easing dollar helps gold eke out mild gain on a volatile day: What analysts say
MCX gold futures, due for a June 4 delivery, quoted stronger by Rs 67 or 0.14 per cent at Rs 47,839 per 10 grams, having fluctuated between gains and losses within a Rs 360 range during the session, as against their previous close of Rs 47,772.
The August 5 contract traded Rs 160 or 0.33 per cent higher at Rs 48,225 at the time.
Silver followed suit on the bourse, last seen trading higher by Rs 172 or 0.25 per cent at Rs 69,390 per kilogram, after seesawing between Rs 68,650 and Rs 69,415, as against its previous close of Rs 69,218 per kilogram.
In the international market, spot gold was last seen trading up 0.48 per cent at $1,792.54, and silver 0.31 per cent at
$26.262 per ounce.
Back home, gold and silver of 99.9 per cent purity stood at Rs 47,806 per 10 grams and Rs 69,152 per kilogram in the spot market, respectively, according to Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body. Both prices exclude GST.
#Gold and #Silver Closing #Rates for 23/04/2021#IBJA https://t.co/RA2i59NWDF
— IBJA (@IBJA1919) 1619178522000
Weakness on Dalal Street, where benchmarks continued to decline after a day’s hiatus amid an unprecedented surge in Covid infections in the country, boosted gold’s safe-haven appeal, weakness in the dollar made the yellow metal more attractive for those trading in other currencies, market participants said.
Precious metal prices are gaining amidst distress in the global economy due to the rise in coronavirus cases. “Switzerland in March recorded its biggest monthly gold exports in 10 months as shipments to India jumped, boosting the overall sentiment,” said Navneet Damani, VP-Commodities Research, Motilal Oswal Financial Services.
“On the other hand, metal prices are gaining amidst distress in the global economy due to the rise in coronavirus cases,” added Damani, who expects a broader range of $1772-1,805 per ounce on COMEX gold (Rs 47,750-48,250 per 10 grams in domestic rates) in the near term.
Technical view
Gold is finding support at $1,772-1,758 and resistance at $1,800-1,814 per ounce, and silver at $25.88-25.55 and $26.60-26.88 per ounce, respectively, said Manoj Kumar Jain, Director-Head of Commodity Research, Prithvi Finmart.
On MCX:
“We suggest buying gold around Rs 47,650 for a target of Rs 48,200 with a stop loss at Rs 47,300,” he added.
Meanwhile, the rupee continued to depreciate for a fourth straight session to settle below the 75 mark against the dollar for the first time in two weeks. It declined by seven paise to shut shop at 75.02 against the greenback for the day.
The dollar index – which measures strength in the greenback against six major peers – was down 39 cents or 0.44 per cent at 90.92 at the last count.
The 10-year US Treasury yield was at 1.54 per cent, a day after declining to 1.53 per cent.
Market participants awaited the outcome of a policy review by the US central bank due next week.