NEW DELHI: Gold and silver futures prices in the domestic market dipped further on Tuesday, falling for the third session in the morning trade, as the US dollar firmed and economic conditions showed improvement.
Losses were checked by prospects of a larger stimulus from the upcoming Democratic government in the US. Gold is considered a hedge against inflation that comes along with large stimulus packages.
Gold futures on MCX were down 0.01 per cent or Rs 6 at Rs 49,335 per 10 grams. Silver futures slipped 0.21 per cent or Rs 139 to Rs 65,416 per kg. The prices recovered slightly in the last session but are still far below the recent peaks.
“Gold prices traded firm on Tuesday with spot gold prices at COMEX were trading near $ 1,846 per ounce, paring some of previous losses. Gold prices witnessed recovery on expectations of a larger stimulus package from the Biden administration along with $ 2,000 corona relief checks. The yellow metal gained despite a stronger dollar as rising cases of coronavirus across the world renewed fears of slower economic growth,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, Gold prices rose Rs 389 to Rs 48,866 per 10 gram in the national capital on Monday, in line with the rise in global price of the precious metal and rupee depreciation. Silver prices also jumped Rs 1,137 to Rs 64,726 per kilogram.
“Gold prices are expected to trade sideways to up for the day. COMEX gold has important resistance at $ 1,860 per ounce and support at $ 1,820 per ounce. MCX Gold February futures support lies at Rs 48,900 and resistance at Rs. 49,700 for the day,” said Patel.
Gold ticked higher on Tuesday as Asian stocks slipped on political ferment in Washington and a global surge in coronavirus cases, although a firmer dollar and higher US Treasury yields limited gains.
Spot gold rose 0.2 per cent at $ 1,847.96 per ounce by 0235 GMT, after touching its lowest since Dec. 2 in the previous session. US gold futures eased 0.2 per cent to $ 1,847.30.
Silver gained 0.8 per cent to $ 25.11 an ounce. Platinum rose 2.3 per cent to $ 1,055.23, while palladium climbed 0.3 per cent to $ 2,378.25.