Benchmark US Treasury yields gained more than 1.3 per cent to their highest since February 2020. Higher bond yields increase the opportunity cost of holding non-interest bearing gold.
Gold futures on MCX were down 0.26 per cent or Rs 124 at Rs 46,775 per 10 grams. Silver futures added 0.27 per cent or Rs 185 to Rs 69,557 per kg.
“Gold prices traded weak with spot gold prices at COMEX were trading near $1,794 in the morning trade after losing more than 1 per cent in the previous trading session. Gold prices witnessed selling on surge in US bond yields on strong economic recovery hopes with vaccine rollouts. The rise in bond yields is also making a case of recovery in dollar which may eventually pressure the yellow metal,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, gold prices in the national capital declined marginally by Rs 9 to Rs 46,900 per 10 gram on Tuesday. Silver gained Rs 95 to Rs 69,530 per kg.
Trading strategies
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold prices having support at $1,780/1,760 per ounce and resistance at $1,820 per ounce. MCX Gold April futures have support at Rs 46,500 per 10 gram and resistance at Rs 47,100 per 10 gram,” said Patel.
Global markets
Gold prices fell on Wednesday to their lowest in nearly two weeks as the dollar firmed and US Treasury yields rose, while platinum eased further after scaling a more than six-year high in the previous session.
Spot gold was down 0.2 per cent to $1,791.36 per ounce by 0118 GMT, after hitting its lowest since Feb. 4 at $1,785.89 in early trade. US gold futures slipped 0.6 per cent to $1,788.40. Silver shed 0.1 per cent to $27.20.
Platinum eased 0.2 per cent to $1,258.56 and palladium fell 0.5 per cent to $2,372.45. Platinum, which is used in automobile catalytic converters to limit exhaust emissions, has rallied about 18 per cent this year on hopes of rising demand as a result of greener technologies.
