Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking a mixed trend in the international spot prices.

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At 10:15 am, gold futures for June delivery fell 0.30 percent to Rs 48,526 per 10 grams as against the previous close of Rs 48,674 and the opening price of Rs 48,598 on the MCX. Silver futures traded 0.34 percent lower at Rs 72,130 per kg. The prices opened at Rs 72,199 as compared to the previous close of Rs 72,374 per kg.

“Gold and silver fell as the minutes from the US Federal Reserve’s most recent monetary policy meeting indicated tightening its accommodative policy, giving the greenback a boost. Strength in US dollar and spike in Treasury yields weighed on precious metal prices,” said Ajay Kedia, Director, Kedia Advisory.

International gold prices climbed on Thursday, aided by growing US inflationary pressure, although gains were curbed as the dollar rebounded and US Treasury yields rose after Federal Reserve policymakers hinted at a possible shift in future policy, Reuters reported.

Spot gold was up 0.4 percent at $1,877.15 per ounce. US gold futures eased 0.2 percent to $1,877.50.

Gold is seen as a hedge against inflation, but an increase in rates from the Fed will dull bullion’s appeal as it translates into a higher opportunity cost of holding the non-yielding asset.

“The general bias for precious metals seems negative. Hence selling gold and silver on rally is suggested,” Kedia said.

“On MCX, gold may find support at Rs 48,200 and resistance at Rs 48,850. Support for silver is seen at Rs 70,200 and resistance is placed at Rs 73,600,” he added.

Further, SPDR Gold Trust said its holdings fell 0.5 percent to 1,031.27 tonnes on Wednesday from 1,035.93 tonnes on Tuesday.

Meanwhile, the Indian rupee traded flat at 73.16 per dollar amid volatile trade in the domestic equity market.

Here are gold rates across major cities:

Here are silver rates across major cities:

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First Published:May 20, 2021 10:27 AM IST