Gold futures on MCX were up 0.40 per cent, or Rs 185, at Rs 46,071 per 10 gram. Silver futures gained 0.78 per cent, or Rs 486, lower at Rs 63,123 per kg.
The stronger dollar and rise in bond yields further dampened the sentiments for bullions. The dollar index formed near a more than two-week high, making gold more expensive for holders of other currencies.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said gold inched up on dip buying and is supported by increased geopolitical tensions, rising virus cases, rising inflationary pressure and concerns about Chinese economy.
“However, weighing on price is firmness in the US dollar and weaker investor interest. The general bias for gold is on the downside amid increased debate about Fed’s monetary tightening. However, the recent sell-off seems overdone and some recovery is possible,” he added.
Demand for physical gold in India has remained subdued. The minor premium for the precious metal has been completely erased recently.
In the spot market, highest purity gold was sold at Rs 46,525 per 10 gram while silver was priced at Rs 64,186 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The fifth tranche of sovereign gold bonds (SGB) scheme 2021-22 is open for subscription, with the issue price set at Rs 4,790 per gram of gold. A discount of Rs 50 per gram will be given to those who are applying online.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX spot gold support at $1,720 and resistance at $1,750 per ounce. MCX Gold October support lies at Rs 45,600 and resistance at Rs 46,400 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said.
Global markets
Spot gold was little changed at $1,730.47 per ounce by 0039 GMT. On Monday, prices touched $1,684.37, their lowest since March 31. US gold futures edged 0.4% higher to $1,732.90 per ounce.
Silver was steady at $23.43 per ounce after falling to an eight-month low in the previous session. Platinum edged 0.1% higher to $980.81 and palladium rose 0.1% to $2,603.20.
