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Gold price today: Yellow metal tops Rs 47,200, silver trades flat

NEW DELHI: Gold prices edged higher on Tuesday after the dollar took a breather, lifting demand for the safe-haven metal, ahead of US Federal Reserve Chairman Jerome Powell’s testimony to Congress later in the day. The yellow metal ticked up in domestic markets, following the global cues.

The US economy continues to show “sustained improvement” from the impact of the Covid-19 pandemic and ongoing job market gains, but inflation has “increased notably in recent months,” Powell said in prepared testimony for a congressional hearing on Tuesday.

The dollar index retreated from two-month highs against its rivals, making gold less expensive for holders of other currencies. The benchmark 10-year yield held below 1.50 per cent, reducing the opportunity cost of holding non-interest bearing gold.

Gold purchases in India have inched up recently after a decline in local rates, although dealers cautioned that demand in the world’s second largest bullion market is unlikely to return to normal levels soon. Gold has turned choppy after the recent sell off.

Gold futures on MCX were up 0.27 per cent or Rs 126 at Rs 47,200 per 10 grams. Silver futures shed merely 0.03 per cent or Rs 17 to Rs 67,745 per kg.

“COMEX gold trades higher near $1789/oz after a 0.8 per cent gain yesterday. Gold has recovered from recent lows as the US dollar index shed some of its gains. Also supporting price is rising inflation concerns, virus risks and uneven recovery,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

In the spot market, highest purity gold was sold at Rs 47,161 while silver was priced at Rs 67,922 on Monday, according to the Indian Bullion and Jewellers Association.


“ETF activity however shows lack of confidence in investors. Also weighing on price is Fed’s projection of early rate hikes. Gold is seeing some relief rally however it may not continue for long as the US dollar may benefit from diverging monetary policy outlook.”

Trading strategy

“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1760 and resistance at $1800 per ounce. MCX Gold August futures support lies at Rs. 46700 and resistance at Rs. 47400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets

Spot gold was up 0.1 per cent at $1,784.83 per ounce, as of 0054 GMT. U.S. gold futures gained 0.1 per cent at $1,783.90 per ounce.

Silver was up 0.6 per cent at $25.95 per ounce, palladium climbed 1 per cent to $2,490.93, while platinum rose 0.4 per cent to $1,037.89.

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