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NEW DELHI: Gold prices traded in the red on Thursday, but the fall was capped by a weaker dollar, which makes bullion attractive for holders of other currencies.
Gold was on track for its biggest annual decline since 2015, having fallen nearly 5 per cent so far this year. Analysts have said gold trading is likely to remain thin and range-bound this week.
Gold futures on MCX eased 0.12 per cent or Rs 56 to Rs 47,783 per 10 grams. Silver plunged 0.30 per cent or Rs 185 to Rs 61,655 per kg.
Ravi Singh, Vice President & Head of Research, ShareIndia said, “Amid low volumes due to holidays, gold prices are trading sideways. A stronger dollar is putting pressure on gold prices. Low volatility is expected to continue till next week.”
In the spot market, the highest purity gold was sold at Rs 47,876 per 10 grams while silver was priced at Rs 61,588 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot price of gold has slipped below Rs 48,000 market for the first time since December 13, while silver has been able to hold Rs 61,000 for the last 10 trading sessions.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 and resistance at $1,815 per ounce. MCX Gold February support lies at Rs 47,600 and resistance at Rs 48,100 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was steady at $1,803.03 per ounce by 0059 GMT. US gold futures were down 0.1 per cent at $1,804.30.
Spot silver was down 0.1 per cent at $22.79 an ounce, platinum edged 0.1 per cent lower to $966.71, and palladium fell 0.1 per cent to $1,982.17.