24 Apr , 2021 By : Kanchan Joshi
Gold futures in Indian markets ended 0.44% lower at Rs47560 per 10 gram on Friday but for the week poste marginal gains of about Rs200. It was a volatile week with gold hitting 2-month of Rs48,500 on Wednesday, becoming coming under some selling pressure over the next two days. Still gold is up Rs3,500 so far this month, tracking a rebound in global rates.
Silver on MCX settled 0.73% at Rs68710 on Friday. MCX gold has support at Rs47450- 47150 levels, say analysts.
On Friday, gold fell in international markets amid rising bond yields after strong US economic data refueled optimism of a global recovery. Data released showed new-home sales in the US jumped sharply in March to the highest since 2006. Output at manufacturers and service providers also reached a record high in April. Spot gold fell as much as 0.8% to $1,770.04 an ounce.
After a record-breaking rally last year, gold has lost momentum this year amid optimism of economies reopening and vaccine rollouts. Dollar strength and rising bond yields have also denting demand for bullion.
Outflows from exchange-traded funds -- which were crucial to bullion’s rally to a record price in August -- have however slowed.
Global equity markets were volatile this week amid a surge in global coronavirus cases and news that the White House plans to propose almost doubling the capital-gain tax rate for the wealthy. S&P 500 rebounds more than 1% on Friday, ending the volatile week flat.
Gold may see a mixed trade as prices have struggled to break past the $1800/ounce level amid choppiness in US dollar. Kotak Securities said, adding that on the downside the precious by increasing virus concerns and and dovish stance of major central banks.
Meanwhile, Reuters citing jewellers, reported that the second covid wave has hit jewellery demand in India due to restrictions. Bullion dealers expect demand to remain weak for the next few weeks amid localised restrictions .
0 Comment