Gold price today: Yellow metal flat; silver posts mild gains

NEW DELHI: Gold and silver prices traded flat on Thursday, following global trends. Markets awaited for more cues after Federal Reserve Chairman Jerome Powell’s ‘powerful support’ and China’s economic data.

Physical gold prices in spot market has gained 3 per cent in the first two weeks of July. However, the gains have been marginal, less than a per cent, in the last one week.

Gold futures on MCX were down 0.05 per cent, or Rs 23, at Rs 48,276 per 10 gram. Silver futures gained 0.10 per cent, or Rs 71, to Rs 69,483 per kg.

The market would also look at US unemployment claims as an increase in claims might pressurize the US dollar and in turn support the yellow metal. The general bias may be on the upside, provided the US dollar stays lower.

“Gold prices extended gains to rally above $1,820, supported by a weaker dollar and fall in US treasury yields. US Fed Chairman, on the first day of his testimony, said that higher inflation will eventually moderate. It has eased worries of unwinding of stimulus,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Physical gold in India was sold at a discount last week as a spike in coronavirus cases prompted strict restrictions and kept buyers away. Premiums for bullion also retreated.

In the spot market, highest purity gold was sold at Rs 48,155 while silver was priced at Rs 69,120 on Wednesday, according to the Indian Bullion and Jewellers Association.

“Gold rose in intraday trade yesterday amid a weaker US dollar and softening US 10-year bond yields as uncertainty on Fed’s stance on tapering bond purchases weigh. Focus for the day would be back on Powell’s second day of testimony to Congress to further assess the monetary situation,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold Aug support lies at Rs 47,900 and resistance at Rs 48,600 per 10 gram,” said Patel of HDFC Securities.

Global markets
Spot gold was steady at $1,824.81 per ounce, as of 0050 GMT, having hit a peak since June 16 on Wednesday at $1,829.55. U.S. gold futures edged up 0.1% to $1,826.40 per ounce.

Silver fell 0.3% to $26.16 per ounce, palladium dropped 0.8% to $2,806.78, and platinum dipped 0.5% to $1,123.83.