Gold prices today: Yellow metal trades flat supported by weaker dollar

NEW DELHI: Gold and silver futures were flat on Monday as a weaker dollar offset bets that the US Federal Reserve could begin tapering its pandemic-era asset purchases soon.

The dollar index dropped to its lowest since September 29, making gold cheaper for buyers holding other currencies.

Gold futures on MCX were up 0.06 per cent or Rs 27 at Rs 46,533 per 10 gram. Silver futures declined 0.04 per cent or Rs 25 to Rs 60,525 per kg.

“Gold prices witnessed recovery from recent lows supported by fall in US bond yields and inflation worries. The rising gas and coal prices have raised concerns over rising input costs for manufacturers across the globe ahead of winter season,” said Ravindra Rao, VP – Head Commodity Research at Kotak Securities.

In the spot market, highest purity gold was sold at Rs 46,434 while silver was priced at Rs 59,581 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 $1,775 per ounce. MCX Gold December support lies at Rs 46,200 and resistance at Rs 45,700 per 10 gram,” said Patel.

Global markets
Spot gold rose 0.2 per cent to $1,764.60 per ounce by 0112 GMT, after hitting $1,765.54, its highest since Sept. 23. US gold futures gained 0.4 per cent to $1,764.90.

Demand for physical gold also picked up in top consumer China last week and there was increased activity in other Asian hubs including Singapore.

Silver was up 0.4 per cent at $22.62 per ounce. Platinum rose 0.4 per cent to $976.08 and palladium edged 0.1 per cent up to $1,921.72.