On Wednesday, the gold and silver futures prices in the domestic market increased as a rally in the US dollar was paused to make precious metals attractive. Unabated rise in infections has also helped the cause. The benchmark of a 10-year Treasury yield pulled back from a 10-month high. It also brought the dollar lower and made the gold cheaper for other unitholders. The infections caused by Covid rose to more than 91 million, and many Asian and European countries have enforced strict restrictions to stop the spread of the virus.
The Vice President of the Commodity Research at Kotak Securities, Ravindra Rao, said that COMEX gold trades are about 0.9 percent higher, nearly $1,961/oz after a 0.4 percent decline yesterday. The high gold trades were supported by the retreat in the US dollar index after any recent gains. He also supports the price in hopes of higher US stimulus, and the impeachment proceedings against US President, Donald Trump.
He also added that weighing on the price is the lack of ETF buying and progress on vaccination. He warned that gold might continue to remain choppy amidst the lack of any fresh triggers, although, the general bias may be high due to the increased stimulus expectations.
In the spot market, the gold prices in the national capital were seen to jump for the second consecutive day on Tuesday and it gained Rs 297 to Rs 48,946 per 10 gram, in line with the rally in international precious metal prices. Silver also gained Rs 1,404 to Rs 65,380 per kg.
Tapan Patel who is the Senior Analyst of HDFC Securities said that gold prices are expected to trade sideways. COMEX gold has also had important resistance at $1,875 per ounce and support at $1,830 per ounce. The support of MCX Gold February futures lies at Rs 48,800 and resistance at Rs 49,600 for the day.