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NEW DELHI: Gold prices opened higher on Tuesday but gave up major gains as the session progressed amid a lack of cues.
Benchmark US 10-year Treasury yields eased after gains in the previous session, buoying demand for gold. The dollar was steady and its strength has put a lid on prices of greenback-priced bullion in recent weeks.
Gold futures on
were trading higher, gaining close to 0.15 per cent or Rs 77 at Rs 50,726 per 10 grams. However, silver futures traded almost flat, down 0.22 per cent or Rs 11 at Rs 60,561 per kg.
Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding bullion, which yields no interest.
Gold prices have clearly ignored the headline of banning Russian gold exports by the G7 countries, and shifted their focus to more fundamental factors like the dollar index, said Patnaik, Head – Commodities, Axis Securities
“The overall demand structure in the US economy looks inflation resistant,” he added. “Focus will now be on the Fed chair’s speech due tomorrow, which will give some insight into the likely monetary policy action in July.”
In the spot market, the highest purity gold was sold at Rs 51,094 per 10 grams while silver was priced at Rs 60,832 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained about Rs 300 per 10 grams as compared to the previous trading session, whereas silver has rallied close to Rs 1,500 in the same period under review.
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“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 50,300 and resistance at Rs 50,900 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Securities.
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Spot gold held its ground at $1,824.51 per ounce. US gold futures were flat at $1,824.50.
Spot silver fell 0.4 per cent to $21.06 per ounce, platinum eased 0.3 per cent to $905.04, while palladium rose 0.7 per cent to $1,883.69.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)