NEW DELHI: Gold and silver futures prices in the domestic market continued to gain in the morning trade on Thursday bucking the trend in the international market, as hopes of a massive stimulus bolstered the prospects for precious metals.
US President Joe Biden signed a string of executive orders, shortly after being sworn in on Wednesday to jump-start the government’s response to the coronavirus pandemic. Gold is considered a hedge against inflation that can result from stimulus measures.
Gold futures on MCX were up 0.30 per cent or Rs 150 at Rs 49,684 per 10 grams. Silver futures added 0.72 per cent or Rs 479 to Rs 67,469 per kg.
“Gold is supported by weakness in the US dollar; increased US stimulus expectations; rising virus cases and increased US-China tensions. However, weighing on price is vaccine progress and weaker investor interest as is evident from ETF flows. Gold’s break past the $1,860/oz may lead to extended gains however the momentum may sustain only if there is progress on US stimulus talks,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold gained for the third day on Wednesday rising Rs 347 to Rs 48,758 per 10 gram in the national capital in line with rally in global precious metal prices. Silver also witnessed buying as it gained Rs 606 to Rs 65,814 per kg.
“The yellow metal also reported gains as investors exited some positions in bitcoins. Gold prices are expected to trade sideways to up on weaker dollar for the day. MCX Gold February futures support lies at Rs 49,200 and resistance at Rs 49,800 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Gold eased from a two-week high on Thursday as investors booked profits after prices jumped in the previous session on hopes of a massive US stimulus package under the new Joe Biden administration.
Spot gold fell 0.1 per cent to $1,868.20 per ounce by 0110 GMT, after hitting its highest since Jan. 8 at $1,871.75 earlier in the session. Bullion had gained 1.7 per cent on Wednesday. US gold futures gained 0.1 per cent to $1,868.50.
Silver shed 0.2 per cent to $25.75 an ounce. Platinum eased 0.5 per cent to $1,103.51, while palladium gained 0.3 per cent to $2,379.28.