Gold prices today: Yellow metal tests Rs 46K level, silver down by Rs 160

NEW DELHI: Hurt by a stronger dollar and rising US Treasury yields, gold and silver futures declined on Tuesday while investors await for more cues from Federal Reserve officials on the central bank’s monetary policy shift.

The dollar index was up 0.1 per cent, making gold more expensive for holders of other currencies. Overnight, benchmark 10-year US Treasury yields rose to their highest level in three months.

Gold futures on MCX were down 0.15 per cent or Rs 67 at Rs 46,002 per 10 gram. Silver futures declined 0.26 per cent or Rs 158 to Rs 60,476 per kg.

“Gold is range-bound as support from global growth worries and rising inflation concerns amid energy crisis is countered by firmness in US dollar and increased expectations of monetary tightening by Fed and other central banks. ETF outflows also show weaker investor interest. Gold may remain choppy as safe haven buying will be offset by Fed’s rate hike expectations,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

In the spot market, highest purity gold was sold at Rs 46,170 while silver was priced at Rs 60,341 on Monday, according to the Indian Bullion and Jewellers Association.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,740 and resistance at $1,770 per ounce. MCX Gold October support lies at Rs 45,800 and resistance at Rs 46,300 per 10 gram,” said Patel.

Global markets
Spot gold fell 0.1 per cent to $1,748.01 per ounce by 0115 GMT, while US gold futures were down 0.3 per cent to $1,747.50.

Poland’s central bank has more than 230 tonnes of gold and plans to expand its reserves, the head of Poland’s Central Bank said on Monday.

Silver fell 0.8 per cent to $22.47 per ounce. Platinum dropped 0.5 per cent to $976.07, while palladium was down 0.6 per cent at $1,952.44.