US President Joe Biden said he agreed with a proposal by Democratic lawmakers that would limit or phase out stimulus payments to higher-income individuals as part of his $1.9 trillion coronavirus relief bill.
Gold futures on MCX were up 0.23 per cent or Rs 112 at Rs 48,060 per 10 grams. Silver futures added 0.25 per cent or Rs 171 to Rs 69,867 per kg.
“Gold remains supported by increased expectations of US stimulus, mixed economic data from major economies and hopes of higher demand from China during Lunar New Year. However, weighing on price is higher bond yields, ETF outflows and improvement in virus situation. Trend in the US dollar continues to be a key price determining factor so any recovery in the US dollar may bring a halt to gold’s rise as well,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold prices in the national capital jumped Rs 495 to Rs 47,559 per 10 grams on Tuesday, in line with a rally in the international market. Silver, on the other hand, witnessed a decline of Rs 99 to Rs 68,391 per kg.
Trading strategy
“The yellow metal paused three days advance, weighing US stimulus progress and consumer price index numbers due on Wednesday evening. We expect gold prices to trade in current range with a firm trade. MCX Gold April futures support lies at Rs 47,600 per 10 gram and resistance at Rs 48,200 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Gold prices edged up on Wednesday. Spot gold rose 0.2 per cent to $1,839.99 per ounce by 0210 GMT. US gold futures gained 0.2 per cent to $1,840.40.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 per cent to 1,148.34 tonnes on Tuesday from 1,152.43 tonnes on Monday.
Spot silver gained 0.6 per cent to $27.36 an ounce, palladium was down 0.3 per cent to $2,312.58. Platinum rose 2.1 per cent to $1,200.03, after hitting $1,202.29 earlier in the session, its highest since February 2015, on supply deficit concerns.
