According to the latest news, gold and silver prices declined in Indian markets amid weak global cues. On Multi Commodity Exchange, gold futures fell by 0.11% and settled at Rs 49,394 per 10 gram. Silver decreased by 0.71% and touched Rs 66,821 per kg. Notably, the yellow metal had dropped by 0.18% while the white metal boosted by 0.5% in the previous session. Moreover, according to Geojit Financial Services, MCX gold has support at Rs 47,400 and resistance at Rs 50,680.
Globally, gold prices declined as U.S. Treasury yields increased; however, the yellow metal remained on course of a nearly 2% weekly gain. Furthermore, spot gold dropped by 0.3% and settled at $1,863.56 per ounce. Other precious metals also witnessed declines; platinum dipped by 1.2% and settled at Rs $1,113.40, silver declined by 1.1% and touched $25.67 an ounce.
Moreover, Benchmark 10-year U.S. Treasury yields held firm above 1%. At the same time, the American currency is slightly lower versus a basket of six currencies. Higher yields boost the opportunity cost of holding non-yielding bullion.
According to Hareesh V, Research Head Commodities at Geojit Financial Services, a weak American currency offers gold support. Moreover, hopes of new economic stimulus measures from the U.S. and fears of a second wave of virus infection also raise the commodity’s demand. Furthermore, a better global growth outlook would restrict significant rallies in the counter.
Notably, if the support of $1,800 remains undisturbed, he said that we could expect a recovery pullback in prices. Still, it requires to break of $1,885 to stabilize the momentum. Besides, the immediate downside turnaround point is placed at $1,770.
Significantly, the broader trend on COMEX could fluctuate between $1,805- 1,880. Meanwhile, on the domestic front, rates could be in the range of Rs 49,300- 50,050.
The gold/silver ratio stands at 73.94 to 1
Significantly, the gold/silver ratio currently stands at 73.94 to 1, which indicates the number of silver ounces needed to purchase one ounce of gold.
Silver prices rose by Rs 1,172 to Rs 67,160 per kg from its closing on January 20.
The futures market’s gold price reached an intraday high of Rs 49,765, while it touched an intraday low of Rs 49,555 on the MCX. For the February delivery, gold reached a low of Rs 41,560 and a high of Rs 57,100.
For February delivery, the yellow metal futures gained Rs 76, which equals 0.15%. They settled at Rs 49,610 per 10 gram in evening trade on a business turnover of 5,451 lots. For April, gold futures surged Rs 55, which equals 0.11%, and touched at Rs 49,696 on a business turnover of 10,083 lots.
