Gold price in India saw a jump on Friday after a huge slump on the previous day. On the Multi-Commodity Exchange (MCX), August gold contracts rose 0.31 per cent to Rs 47,868 for 10 grams at 0920 hours on July 9. However, silver continued to drop even on Friday. September silver futures were trading 0.27 per cent lower at Rs 68,778 a kilogram.
In the international market, gold edged higher on Friday as a drop in US Treasury yields had lifted yellow metal’s demand. It was set for its third straight weekly gain. Spot gold rose 0.2% to $1,805.39 per ounce, by 0312 GMT. For the week so far, it is up more than 1%.US gold futures gained 0.4% to $1,806.50, according to Reuters.
“US jobless claims surprisingly rose slightly last week to 373,000, above a forecast 350,000 applications in a poll suggesting substantial progress needs to be made for the Fed to raise interest rates and also lent support to gold,” said Sriram Iyer, senior research analyst at Reliance Securities.
“International spot gold and silver prices have started weaker this Friday morning in Asian trade. Technically, LBMA Gold resistances are at $1816.08 and $1829.60. Supports are at $1791.66 and $1780.76. LBMA Silver resistances are at $26.159 and $26.412. Supports are at $25.729 and $25.552,” he added.
“Domestic gold and silver prices could start weaker this Friday morning, tracking overseas prices. On the domestic front, MCX Gold August supports are at 47451 and 47182. Resistances are at Rs 48,140 and Rs 48,560. MCX Silver September supports are at 68507 and Rs 68,051. Resistances are at Rs 69,557 and Rs 7,0151,” Iyer further mentioned.
“On Thursday, Spot gold ended marginally lower by 0.05 per cent to close at $1802.6 per ounce. The bullion metal remained afloat on the back of a softer US Dollar and retreating benchmark US Treasury Yield boosted appeal for the bullion metal. However, a steady recovery in the US economy weighed on the safe haven asset, gold. Lower bond return kept the yellow metal prices elevated in this week as high interest rates increases the opportunity cost of holding gold,” said Prathamesh Mallya, AVP — research, non-agri commodities and currencies, Angel Broking Ltd.
“The minutes of the US Federal Reserve policy meet last month indicated towards a sooner than expected tapering of the asset purchase program. Despite mounting inflation worries, a relatively higher unemployment figures still remained a major concern for the US Central bank. However, no further hints on a tighter expansionary policy undermined the US dollar and the treasury yield. Increase in the number of Delta variant COVID-19 cases ignited worries over extension of lockdown in major economies which might further derail the economic recovery.” Mallya added.
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