The prices of gold and silver fell slightly in the Indian markets today. On MCX, gold futures edged down 0.06% to ₹50,050 per 10 grams. The yellow metal declined for the third time in the past four days. Silver fell 0.08% to ₹66,820 per kg. Although gold has recovered from the lows ₹48,000, it remains well below the August highs of ₹56,200. Likewise, the money had almost touched ₹80,000 per kg the same month.
On the contrary, gold prices have jumped higher in international markets as grim US consumption and housing data raised hopes of further stimulus to support an economic recovery from the pandemic-induced crisis. Spot gold rose 0.2% to $ 1,863.83 an ounce at 0027 GMT, while US gold futures fell 0.1% to $ 1,868.10.
Gold regained its strength as the viral situation continued to worsen, as central banks maintained an accommodating stance and governments continued to take action to support their economies. A new strain of coronavirus in the UK has prompted several countries around the world to close their borders to Britain and drugmakers scramble to test their Covid-19 vaccines against it. Weekly Covid-19 infections increased from the highest since the start of the pandemic, with the United States reporting the highest number of cases for a single country, the World Health Organization said on Tuesday.
Silver rose 1% to $ 25.38 an ounce.
Gold’s rise, however, continued to be limited by progress on the vaccine front and lack of ETF flow, Kotak Securities said in a report. “Open interest for the MCX Gold contract in February fell from 11,492 contracts to 11,371 contracts, a decrease of 1.1%. A drop in RO and an increase in prices indicate short coverage in the market. The sharp rise in prices and the marginal change in OI, however, indicate a lack of fresh participation. “
The brokerage further says that the yellow metal has rallied too strongly and we may see volatile trade due to mixed factors, but the general trend may be upward. He recommends buying gold when there is a dip.
“The possible trading range for the week is $ 1840-1920 / oz. MCX Gold is expected to trade in a range of Rs.49200-51100 / 10 grams and buying on bottom is recommended.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.20% to 1,167.53 tonnes on Tuesday from 1,169.86 tonnes on Monday.
On MCX, silver outperformed and rebounded strongly last week as it benefited from concurrent gains in gold and industrial metals thanks to the weak US dollar.
“With the overall positive trend for gold and industrial metals silver can also trade with a positive bias, but we can see some turmoil. MCX Silver can trade in a range of 64850-72000 and it takes wait for lower levels to create new long positions, ”says Kotak Securities. (With contributions from the agency)