NEW DELHI: Gold prices eased on Thursday hurt by a strong dollar but concerns on virus uncertainty capped downside. Meanwhile, investors also assessed central bankers’ next moves as they are likely to respond to surging inflation and concerns over economic growth spurred by the new Omicron variant.
Gold futures on MCX were down 0.20 per cent or Rs 97 at Rs 47,775 per 10 grams. Silver futures inched lower 0.11 per cent or Rs 68 at Rs 61,239 per kg.
The dollar index held firm and rebounded 0.4 per cent from the previous session’s low, increasing gold’s cost to buyers holding other currencies.
Ravi Singh, Vice President & Head of Research, ShareIndia said that gold retreated after the testimony of Fed Chair Jerome Powell before the US Senate Banking Committee.
“The Fed likely will discuss speeding up its taper of large-scale bond purchases at its next meeting,” he added. “Powell’s comments also helped strengthen the US dollar, further weighing on gold.”
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 990.82 tonnes on Wednesday from Tuesday.
Physical gold demand picked up in major Asian hubs recently with dealers in India preparing for a likely spurt in buying as the wedding season gathers pace.
In the spot market, the highest purity gold was sold at Rs 47,807 per 10 grams while silver was priced at Rs 62,069 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has eased more than Rs 1,400 per 10 grams in the last two weeks, whereas silver has declined about Rs 4,400 per kg during the period under review.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,760 and resistance at $1,800 per ounce. MCX Gold February support lies at Rs 47,600 and resistance at Rs 48,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold 0.1 per cent to $1,780.36 per ounce by 0050 GMT. U.S. gold futures GCv1 dropped 0.1 per cent to $1,782.50
Spot silver rose 0.3 per cent to $22.37 an ounce. Platinum gained 0.2 per cent to $935.48, while palladium increased 0.4 per cent to $1,753.68.
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