Benchmark US Treasury yields hovered near the one-year peak hit in the previous session. Higher yields increases the opportunity cost of holding a non-yielding bullion. The dollar languished near three-year lows versus riskier currencies.
Gold futures on MCX were down 0.16 per cent or Rs 74 at Rs 46,448 per 10 grams. Silver futures rose 0.65 per cent or Rs 452 to Rs 69,995 per kg.
“Gold is choppy as support from Fed’s loose monetary policy stance and hopes of additional US stimulus measures is countered by higher bond yields, improving virus situation and continuing ETF outflows. Gold may remain directionless amid mixed cues however Fed’s loose monetary policy stance may continue to support,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold prices on Wednesday slipped Rs 148 to Rs 46,307 per 10 grams in the national capital, due to overnight selling in global prices and rupee appreciation. Silver also shed Rs 886 to Rs 68,676 per kilogram.
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“The dollar recovery dampened haven demand for gold despite the dovish Fed stance. We expect gold prices to trade sideways to down for the day. MCX Gold April futures support lies at Rs 46,300 and resistance at Rs 46,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC securities.
Global markets
Gold prices edged lower on Thursday as higher US Treasury yields dented the metal’s appeal, although losses were limited by a weaker dollar and Federal Reserve Chairman Jerome Powell’s dovish comments.
Spot gold fell 0.3 per cent to $1,798.71 per ounce by 0059 GMT. US gold futures gained 0.2 per cent to $1,801.20.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4 per cent to 1,106.36 tonnes on Wednesday from 1,110.44 tonnes on Tuesday.
Silver slipped 0.7 per cent to $27.79 an ounce. Platinum fell 1.1 per cent to $1,254, while palladium eased 0.1 per cent to $2,433.33.
