09 Jul , 2021 By : Kanchan Joshi
Gold prices in India were higher today, tracking firm global cues, but silver rates dropped. On MCX, gold futures were up 0.35% to Rs47,887 per 10 gram while silver rates dropped 0.2% to Rs68,826 per kg. In global markets, gold rates remained steady and were headed for third straight weekly gain, boosted by a further drop in US bond yields. Spot gold was steady at $1,800.85 per ounce. Prices have risen 0.8% so far this week.
Technically, "as long as gold prices stay above $1800 there are chances of recovery upticks to continue, but major rallies are unlikely for the day. However, if it drops below $1774 expect further weakness in the counter," says domestic brokerage Geojit.
MCX Gold has resistance at Rs49,300 and support at Rs47,030, it added.
Weak equity markets also supported gold amid concerns over new coronavirus variants that has forced many countries to impose fresh restrictions.
"Amid other factors, gold remains supported by renewed virus concerns, inflationary concerns and uneven global economic recovery. However, weighing on price is weaker investor interest," Kotak Securities said in a note.
"Gold may witness choppy trade as market players assess Fed’s monetary policy stance in light of economic recovery and rising inflation against persisting challenges to the economy. The general bias however may be on the downside as US dollar may remain supported by diverging monetary policy stance of Fed and other central banks," the brokerage added.
However, a stronger US dollar capped gold's rise. US bond yields were near a four-month low, reducing the opportunity cost of holding non-interest bearing gold.
Also, supporting gold, data on Thursday showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week, indicating that the labour market recovery continues to be choppy.
Gold had tumbled 7% last month over fears of an imminent monetary policy tightening by the Fed.
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