Gold futures on MCX were up 0.12 per cent or Rs 57 at Rs 48,110 per 10 grams. Silver futures shed 0.44 per cent or Rs 300 to Rs 68,019 per kg.
Inflows in gold-and silver-backed exchange-traded funds (ETFs) are steady as talk of fiscal tightening increases. Lean speculative positioning in both gold and silver leaves room for a price rise.
Gold ETFs attracted Rs 1,328 crore from investors in the quarter ended June 2021 and experts believe that inflows will continue in the coming months of the fiscal, the Amfi data said. Inflow in the category was much higher at Rs 2,040 crore in the same quarter last year.
Many countries are struggling to curb the highly contagious delta variant of the coronavirus and have been forced into taking lockdown measures. Gold is used as a safe investment during uncertain times.
A fall in benchmark treasury yields to a near two week low reduced the opportunity cost of holding non-interest bearing gold. However, safe-haven gains for the U.S. dollar limited gold’s appeal.
“Gold prices reported fourth weekly gain supported by fall in US treasury yields and dovish Fed stance. The recent comments from FED chairman in his testimony signalled higher inflation which boosted buying in gold,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, highest purity gold was sold at Rs 48,273 while silver was priced at Rs 68,912 on Friday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1795 and resistance at $1833 per ounce. MCX Gold August support lies at Rs. 47800 and resistance at Rs. 48500 per 10 gram,” said Patel of HDFC Securities.
Global markets
Spot gold was up 0.1% at $1,812.83 per ounce, as of 0243 GMT, after falling 1% in the previous session. U.S. gold futures eased 0.1% to $1,813.70.
Silver fell 0.6% to $25.50 per ounce, palladium rose 0.2% to $2,635.65, and platinum eased 0.2% to $1,100.55.
