/Gold prices today struggle below Rs 46,900; silver costlier by Rs 450

Gold prices today struggle below Rs 46,900; silver costlier by Rs 450

NEW DELHI: Gold and silver futures prices gained on Friday tracking the trend in the international market and investors buying at lower levels ahead of RBI policy meet outcome scheduled later in the day.

Meanwhile, Democrats in the US Senate were poised on Thursday to take a first step toward the ultimate passage of President Joe Biden’s $ 1.9 trillion Covid-19 relief proposal.

Gold futures on MCX were up 0.30 per cent or Rs 141 at Rs 46,856 per 10 grams. Silver futures rose 0.68 per cent or Rs 457 to Rs 67,275 per kg.

“Gold inched up today gaining support from ETF buying, US stimulus expectations and loose monetary policy stance of central banks. However, weighing on the price is the recent rise in the US dollar index and bond yields on the back of improving outlook for the US economy. Vaccine progress has also pressurized gold prices,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

“However, supporting price is global growth worries amid persisting virus risks and loose monetary policy stance of major central banks and hopes of additional US stimulus.”

In the spot market, gold in the national capital on Thursday declined Rs 322 to Rs 47,135 per 10 gram, recording fall for the fourth consecutive day, with drop in global precious metal prices and rupee appreciation. Silver also declined Rs 972 to Rs 67,170 per kg

Trading strategy
“The traders and investors are awaiting today’s US non farm payroll data which may further put pressure on gold prices. We expect gold prices to trade lower for the day with support at $ 1,760 per ounce and resistance at $ 1,820 per ounce in the international market. MCX Gold April futures support lies at Rs 46,400 and resistance at Rs 47,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Gold inched up on Friday, recovering from a more than two-month low it hit in the previous session, but the precious metal was set for its biggest weekly drop since November-end pressured by a firmer dollar.

Spot gold rose 0.1 per cent to $ 1,794.11 per ounce by 0247 GMT. Prices fell over 2 per cent to their lowest level since Dec. 1 on Thursday. For the week, gold was down 2.8 per cent, on track for its biggest weekly decline since the week ended Nov. 27.

US gold futures gained 0.2 per cent to $ 1,794.70.

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