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NEW DELHI: Gold futures were trading lower on Tuesday after hitting a two-month high in the previous session, as a rise in US Treasury yields eclipsed support from a weaker dollar. On the other hand, silver futures gained.
Benchmark 10-year US Treasury yields rose above 1.6 per cent after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion. Gold is seen as a hedge against inflation that could follow stimulus measures, but higher Treasury yields have dulled some of the appeal of the non-yielding commodity this year.
Gold futures on MCX were down 0.18 per cent or Rs 86 at Rs 47,307 per 10 grams. Silver futures added 0.15 per cent or Rs 104 to Rs 68,428 per kg.
In the spot market, gold rallied by Rs 411 to Rs 47,291 per 10 gram in the national capital on Monday reflecting strong buying in the global precious metal and rupee depreciation. Silver also gained Rs 338 to Rs 68,335 per kilogram.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,755 and resistance at $1,790 per ounce. MCX Gold June support lies at Rs 47,100 and resistance at Rs 47,700 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was down 0.2 per cent to $1,766.32 per ounce by 0245 GMT, after hitting its highest since Feb 25 at $1,789.77 on Monday. US gold futures eased 0.3 per cent to $1,766.10 per ounce.
Silver fell 0.2 per cent to $25.75 per ounce, palladium dropped 0.9 per cent to $2,786.78 and platinum slipped 0.3 per cent to $1,202.32.