Commodity Summary
MCX
NEW DELHI: Gold and silver futures prices slid on Thursday tracking the trend in the international market as rising dollar and bond yields resulted in flight of money from non yielding precious metals.
The dollar hit its highest in over two months on Wednesday, making precious metals expensive for holders of other currencies. Benchmark 10-year Treasury yield rose to its highest in over three weeks.
Gold futures on MCX were down 0.56 per cent or Rs 269 at Rs 47,547 per 10 grams. Silver futures dropped 1.09 per cent or Rs 745 to Rs 67,820 per kg.
“Weighing on gold price is the rise in US 10-year bond yield to 3-week high amid increased optimism about the US economy amid some upbeat economic data and increased efforts to approve a stimulus package. Also weighing on price is weaker investor interest as is evident from ETF outflows,” 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 Wednesday declined by Rs 232 to Rs 47,387 per 10 gram amid decline in global precious metal prices. Silver also dipped Rs 1,955 to Rs 67,605 per kilogram.
Trading strategy
“Gold prices are trading under pressure as the dollar is hovering near two months high levels and a rise in bond yields. Gold prices are expected to trade in the current range with sideways to downtrend for the day. MCX Gold April futures support lies at Rs 47,500 and resistance at Rs 48,200 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold eased 0.1 per cent to $1,832.84 per ounce by 0044 GMT. US gold futures were steady at $1,834.70.
Spot silver shed 0.5 per cent to $26.72. Prices have eased since hitting a near eight-year peak of $30.03 on Monday as the social media-driven rally fizzled out. Platinum fell 0.4 per cent at $1,096.08 an ounce and palladium lost 0.2 per cent to $2,270.06.
The dollar hit its highest in over two months on Wednesday, making precious metals expensive for holders of other currencies. Benchmark 10-year Treasury yield rose to its highest in over three weeks.
Gold futures on MCX were down 0.56 per cent or Rs 269 at Rs 47,547 per 10 grams. Silver futures dropped 1.09 per cent or Rs 745 to Rs 67,820 per kg.
“Weighing on gold price is the rise in US 10-year bond yield to 3-week high amid increased optimism about the US economy amid some upbeat economic data and increased efforts to approve a stimulus package. Also weighing on price is weaker investor interest as is evident from ETF outflows,” 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 Wednesday declined by Rs 232 to Rs 47,387 per 10 gram amid decline in global precious metal prices. Silver also dipped Rs 1,955 to Rs 67,605 per kilogram.
Trading strategy
“Gold prices are trading under pressure as the dollar is hovering near two months high levels and a rise in bond yields. Gold prices are expected to trade in the current range with sideways to downtrend for the day. MCX Gold April futures support lies at Rs 47,500 and resistance at Rs 48,200 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold eased 0.1 per cent to $1,832.84 per ounce by 0044 GMT. US gold futures were steady at $1,834.70.
Spot silver shed 0.5 per cent to $26.72. Prices have eased since hitting a near eight-year peak of $30.03 on Monday as the social media-driven rally fizzled out. Platinum fell 0.4 per cent at $1,096.08 an ounce and palladium lost 0.2 per cent to $2,270.06.
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