Investors braced for US inflation data that could offer cues on the Federal Reserve’s timeline to start tapering stimulus measures meant to aid economic recovery from the pandemic.
Gold futures on MCX were marginally down 0.04 per cent, or Rs 20, at Rs 46,888 per 10 gram. On the other hand, silver futures declined 0.19 per cent, or Rs 119, at Rs 63,180 per kg.
The yellow metal is range-bound, with mixed fundamentals and US Fed tapering expectations. Global players are awaiting for US inflation data later in the day
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold paused after recent losses as the US dollar came to a halt after testing a two-week high. Correction in bond yields and some ETF inflows also lent support.
“Rising inflation concerns, persisting virus risks, China’s regulatory crackdown measures and increasing geopolitical tensions are supporting the yellow metal. Gold may remain choppy ahead of inflation data. However, a reading in line with or lower than expectations may ease worries about Fed’s tightening and lend support to gold prices,” he added.
In the spot market, highest purity gold was sold at Rs 47,059 per 10 gram while silver was priced at Rs 62,876 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal have declined about Rs 500 in the last one week, whereas silver rates tanked up to Rs 2,100 per kg during the period.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,775 and resistance at $1,803 per ounce. MCX Gold October support lies at Rs 46,600 and resistance at Rs 47,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold eased 0.2% to $1,790.66 per ounce by 0337 GMT, while US gold futures fell 0.1% to $1,791.90.
Silver fell 0.3% to $23.65 per ounce, platinum dipped 0.2% to $958.73 and palladium rose 0.3% to $2,094.16.
