Gold prices in India rose today after a two-day fall while silver also edged higher, tracking positive global cues. On MCX, gold futures today rose 0.4% to ₹44,835 per 10 gram while silver gained 0.34% to ₹65,190 per kg. MCX gold has support at 44700-44600 levels and resistance at 45000-45100 levels, says Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited.
In global markets, gold prices were higher today despite a stronger US dollar. Spot gold was up 0.3% at $1,731.75 per ounce, with analysts saying that the precious metal was able to attract buy-on-dips demand amid a fall in US bond yields and surge in coronavirus cases in some parts of the world. Among other precious metals, silver edged up 0.3% to $25.16 and platinum was flat $1,168.08.
Gold has remained in a range for the last two weeks after falling close to one-year low levels earlier this month. In August last year, gold had hit a record high of ₹56,200 per 10 gram.
"Gold seems to have made a bottom near $1670-1680/ounce region. However, price is yet to sustain above the $1750 region to see extended gains. In the near term, trend in US dollar and bond yields may continue to impact gold price," Kotak Securities said in a note.
Gold prices have also benefitted from mixed economic data from major economies, renewed coronavirus concerns and increased US-China and US-Russia tensions but weighing on the precious metal was gains in US dollar index, bond yields and weaker investor interest as is evident from continuing ETF outflows, the brokerage added.
US treasury yields slipped to the lowest in over a week while the dollar rose after US Fed chief Jerome Powell played down inflation risk. On Tuesday, he told US lawmakers that he expected inflation to rise over the year but it would be "neither particularly large nor persistent."
Powell is also scheduled to testify to the Senate Banking Panel today and his comments would be closely watched.
US Treasury Secretary Janet Yellen also on Tuesday told lawmakers that President Joe Biden is willing to hike corporate taxes to pay for his administration's priorities. The comments from Yellen come after US President Joe Biden has vowed to soon propose a huge infrastructure package that will help the United States create jobs and fight climate change.
In testimony for the House Financial Services Committee, Yellen indicated that the White House would propose raising the corporate tax rate to 28 percent, and find ways to get US corporations to move more of their business into the United States.
In equity markets, Asian stocks were mostly lower tracking an overnight decline in US markets amid concerns over renewed surge in covid cases in some parts of the world. (With Agency Inputs)
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