02 Jun , 2021 By : Kanchan Joshi
Gold and silver prices in India markets edged lower, tracking a downtick in global rates. On MCX, gold futures slipped 0.15% to Rs49,363 per 10 gram while silver futures fell 0.6% to Rs71,832 per kg. In the previous session, gold had risen to over 4-month high of Rs49,700 per 10 gram. In India, gold rates have jumped about Rs5,000 in past two months amid global rebound. Still the precious metal is down about Rs7,000 from its last year's record high of Rs56,200.
In global markets, gold came off five-month highs as higher US bond yields weighed on precious metal. Strong US economic data also took away some shine off gold. Spot gold was down 0.1% at $1,898.58 per ounce, after hitting a near 5-month high of $1,916.40 on Tuesday. The dollar also strengthened against other currencies.
Gold faces resistances at $1915 and then 1925 levels, says domestic brokerage Geojit. On the other hand, the precious metal has support at $1875 and then at $1810, the brokerage said.
Data showed that U.S. manufacturing activity picked up in May. Overnight, the US 10-year Treasury yield rose to a more than one-week high overnight. Higher yields increase the opportunity cost of holding non-interest bearing gold.
Gold traders will be keenly watching US employment report for May, which will be released on Friday. Also top Fed officials, including Robert Kaplan and Charles Evans, are set to speak today.
Among other precious metals, silver edged 0.1% lower to $27.88, and platinum was steady at $1,191.
Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1,045.83 tonnes on Tuesday from 1,043.21 tonnes on Friday.
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