Gold was trading lower in the Indian markets on the toes of the international markets.
On MCX (Multi-Commodity Exchange), June contracts dipped 0.15% to Rs 47,365 for 10 grams early in the day on Friday.
The other precious metal, which is also used as an industrial metal, silver too was trading 0.11% lower at Rs 70,399 per kilogram.
The decline of gold is due to US Treasury yields rising to an eight-week high and the dollar remaining firm after a rise which surprised almost everyone.
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Amit Khare, AVP – Research Commodities, Ganganagar Commodities Limited claims, “Currently, the 10-year note is yielding 1.699%, gaining seven basis points from the open when notes were fixed at 1.693%. Gold futures incurred a strong selloff trading to a low today of $1813 before recovering slightly. A tremendous factor to today’s decline in gold besides higher yields was dollar strength which gained approximately three-quarters of a percent and is currently fixed at 90.785. It is likely that gold’s trajectory for the remainder of this year is up, rather than down.”
He continues, “Technically, MCX Gold June could see sideways to marginal downside momentum within the range of Rs 47,150-47,600 level. Technically, MCX Silver July holds a resistance at Rs 71,000-72,300 levels. Support is at Rs 70,000-68,900 levels. MCXBULLDEX May could trade on a negative note but within the range of Rs 14, 750-15,000 levels.”
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He believes that the negative trends seen in both the precious metals on Thursday were due to profit booking.
He is hopeful that the insatiable love of gold by Indians on the auspicious day of Akshay Tritiya is more likely to push the prices of gold upwards by the evening.
Thus, he advises to buy gold at lower prices to benefit from the upcoming price rise in gold.
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