Gold Futures Trades Lower On Stronger US Dollar, Bond Yields

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Gold Prices Today: Gold Futures Trades Lower On Stronger US Dollar, Bond Yields

Gold Rates Today: Domestic spot gold closed at Rs 46,838 per 10 grams on Wednesday

Gold Price In India: Gold futures traded lower on Thursday, December 30, as the yellow metal took cues from trends in international markets. On the Multi Commodity Exchange (MCX), gold futures due for a February 4 delivery, were last seen trading lower by Rs 170 or 0.36 per cent – at Rs 47,669, compared to their previous close of Rs 47,839. Silver futures due for a March 4 delivery were last down 0.47 per cent at Rs 61,550 against a previous close of Rs 62,838.

Domestic spot gold opened at Rs 48,838 per 10 grams on Thursday, and silver at Rs 61,096 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Gold in international markets:

Gold prices slipped for a third straight session on Thursday as the dollar gained, with bullion hovering around the $1,800 mark as it heads towards its worst annual performance in six years. Spot gold fell 0.2 per cent to $1,799.54 per ounce, while U.S. gold futures fell 0.3 per cent to $1,800.80.

The dollar index gained 0.3 per cent, recovering from close to a one-month low hit in the last session, while benchmark 10-year US Treasury yields steadied near a one-month peak, raising the opportunity cost of holding non-interest paying gold.

Gold prices have fallen about five per cent in 2021, the most since 2015, as economies recovered from the impact of the pandemic, reducing demand for safe-haven bullion.

”COMEX gold trades marginally lower near $1802/oz after yesterday’s 0.3 per cent decline. Gold continues to trade within the $1780-1820/oz range seen for last few days amid lack of fresh cues and lower trade volumes due to year-end holidays.

Support from weaker US dollar and persisting virus risks and China concerns are countered by sharp rise in US bond yields and weaker investor interest. Gold may remain choppy trade reflecting larger market however higher yields may keep prices under pressure,” said Ravindra Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities.

Trading Strategy:

Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited:

”Gold and silver prices were lower in midday trading but well up from their session lows. A lower US dollar index today has helped lift the two metals up from their daily lows. However, profit-taking by the shorter-term futures traders, rising US Treasury yields, and weaker crude oil prices on this day are price-negatives outweighing the positives.

Movement may be very slow due to year-end and new year holiday in US market, As per daily technical chart gold and silver both are ready for some profit booking. Traders are advised to create fresh sell positions near given resistance levels and focus on important technical levels given below for the day :

February Gold closing price 47839, Support 1 – 47500, Support 2 – 47300,  Resistance 1 – 47950, Resistance 2 – 48100.”

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