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NEW DELHI: Gold and silver futures prices in the domestic market continued to slide in the morning trade as the slide continued for the second day on Friday as India readied itself to vaccinate 30 crore citizens from January 16, lifting appetite for riskier assets.
Meanwhile, US President-elect Joe Biden unveiled a $1.9 trillion stimulus package proposal on Thursday designed to jump-start the economy and accelerate the distribution of coronavirus vaccines.
Gold futures on Multi Commodity Exchange (MCX) were down 0.15 per cent or Rs 76 at Rs 49,145 per 10 grams. Silver futures slipped 0.75 per cent or Rs 502 to Rs 66,181 per kg.
“COMEX gold trades little changed near $1,851/oz after a 0.2 per cent decline yesterday. Gold is choppy as support from rising virus cases, disappointing US economic data and hopes of higher US stimulus is countered by higher US bond yields, vaccine progress and continuing ETF outflows,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities. “Gold may remain choppy along with US dollar and equity markets as implications of higher US stimulus are assessed however general bias may be on the upside.”
In the spot market, gold prices and silver prices were flat on Thursday, according to data available on MCX. Gold traded at Rs 49,285 per 10 gram in Ahmedabad and silver was at Rs 65,174 per kilogram.
Trading strategy
“Gold prices as expected have found support on stimulus hopes limiting the downside. Gold prices are expected to trade sideways to up for the day. COMEX gold has important resistance at $1,870 per ounce and support at $1,830 per ounce. MCX Gold February futures support lies at Rs 48,800 and resistance at Rs 49,700 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Gold rose on Friday as prospects of a substantial US pandemic relief package boosted the metal’s appeal as an inflation hedge, while the Federal Reserve’s dovish stance on monetary policy also supported prices.
Spot gold rose 0.3 per cent to $1,851.14 per ounce by 0251 GMT, while U.S. gold futures were flat at $1,851.20. Silver rose 0.3 per cent to $25.59 an ounce. Platinum eased 0.8 per cent to $1,108.92, but was up over 4 per cent so far this week, while palladium held steady at $2,408.06.