Gold prices have struggled in Indian markets today after rising sharply the week before. On MCX, gold futures were stable at ₹46947 after an outbreak ₹700 in the previous session. Silver futures added 0.24% to ₹70598 per kg, extending the previous session ₹Gain of 1500. After falling more than 2% last week, gold prices rebounded this week as traders refocus on rising inflation expectations and potentially massive economic stimulus in the United States .
In global markets, gold extended its gains today after a surge in the previous session as benchmark US Treasury yields retreat. Spot gold rose 0.1% to $ 1,809.57 an ounce after gaining 1.5% in the previous session. A weaker US dollar also supported the gains. Higher yields increase the opportunity cost of holding bullion.
“Gold’s rallies may continue as long as it maintains the firm support of $ 1760. Either way, major resistance is placed at $ 1870. An unexpected drop below $ 1755 would be an early signal. from major selling pressure, ”national broker Geojit said in a note.
Benchmark US Treasury yields eased after a one-year high reached on Monday.
Holdings in gold-backed exchange-traded funds, however, have seen regular outflows. Holdings of SPDR Gold Trust, the world‘s largest gold-backed exchange-traded fund, said their holdings fell 1.1% to 1,115.4 tonnes on Monday.
Among other precious metals, silver fell 0.4% to $ 28.04 an ounce. Platinum fell 0.4% to $ 1,267.46, while palladium climbed 0.3% to $ 2,401.52.
Meanwhile, the House Budget Committee brought forward President Joe Biden’s $ 1.9 trillion pandemic relief bill, preparing it to pass the lower house by the end of this week.
Investors are now awaiting testimony from Federal Reserve Chairman Jerome Powell on the semi-annual monetary report to Congress, due later today.
Powell’s semi-annual report to the Senate Banking Committee on Tuesday and the next day to the House Financial Services panel will be watched for further policy guidance and his assessment of the recovery.