Gold was trading lower in the Indian market on Akshaya Tritiya (May 14), following the trend in the international market. On the Multi-Commodity Exchange (MCX), June gold contracts dipped 0.15% to Rs 47,365 for 10 grams at 9.55 am on Friday. July silver future were trading lower by 0.11% at Rs 70,399 a kilogram.
Gold edged lower on Friday as US Treasury yields rose to an eight-week high and the dollar firmed after a bigger-than-expected rise. Spot gold was down 0.2% at $1,823.77 per ounce by 0127 GMT. Bullion lost 0.4% so far this week. US gold futures were steady at $1,823.20, Reuters reported. The dollar index held firm near a one-week high, and was set for a weekly gain against its rivals, news agency mentioned.
“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 more likely that gold’s trajectory for the remainder of this year is up, rather than down,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.
Gold and silver showed negative trends on Thursday. “ We saw profit booking in both precious metals in the last two trading sessions, Today is Akshay Tritiya festival in India, we saw a good demand in precious metals on this auspicious day of Akshay Tritiya every year, So we can see a sharp up side movement in Gold and Silver prices by today evening,” Khare mentioned.
“So traders are advised to take the advantages if prices goes down today and go long in lower price. traders should also focus important technical levels given below: June Gold closing price 47,438, Support 1 – 47,200, Support 2 – 47,000, Resistance 1 – 47,620, Resistance 2 – 47,900. July Silver closing price 70,473, Support 1 – 69,800, Support 2 – 68,800, Resistance 1 – 70,900, Resistance 2 – 718,00,” he further added.
“Love for the yellow metal among Indians is no secret, and buying gold on Akshaya Tritiya is considered auspicious. But this time around gold buying may get affected due to the outbreak of the second wave of COVID in cities in India. It is advisable for investors and gold buyers to not venture out during these times and opt for digital/paper gold instead of physical gold,” said Nish Bhatt, chief executive officer and founder, Millwood Kane International.