Gold futures on MCX were down merely 0.10 per cent, or Rs 47, at Rs 47,954 per 10 gram. Silver futures traded marginally up 0.03 per cent, or Rs 23, at 67, 870 per kg.
Ravindra Rao of Kotak Securities said that gold is pressurized by some recovery in the US dollar index from recent lows on the back of upbeat economic data. However, supporting the gold price is Fed’s less hawkish stance, increasing concerns about China and rising virus cases.
“ETF investors moved to sidelines after brief inflows last week. Gold has come under pressure after failing to break past recent highs and while choppy trade is likely, prices may remain supported by increasing economic uncertainty and Fed’s less hawkish stance,” he added.
The demand for physical gold remained subdued in India last week as rising prices discouraged retail purchases.
In the spot market, highest purity gold was sold at Rs 48,430 per 10 gram while silver was priced at Rs 68,053 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
After a prolonged flat movement, the prices of physical gold and silver remained mixed in July. The yellow metal gained up to Rs 850 per 10 gram, whereas silver declined Rs 900 per kg in the last one month, data suggested.
China’s factory activity expanded in July at the slowest pace in 17 months amid higher raw material costs and extreme weather, adding to concerns about a slowdown in the world’s second biggest economy.
Asia saw a jump in COVID-19 cases on Saturday, mostly driven by the highly transmissible Delta variant of the disease.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,795 and resistance at $1,833 per ounce. MCX Gold October support lies at Rs 47,800 and resistance at Rs 48,300 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold fell 0.2% to $1,809.21 per ounce by 0137 GMT. Prices retreated from a two-week peak in the previous session after the dollar recovered. US gold futures fell 0.1% to $1,814.90.
Silver fell 0.4% to $25.37 per ounce, palladium rose 0.1% to $2,664.34, while platinum gained 0.6% to $1,054.72.
