Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Tuesday amid a positive momentum in the international spot prices as the dollar weakened.

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At 11:05 am, gold futures for April delivery gained 0.01 percent to Rs 46,905 per 10 grams as against the previous close of Rs 46,901 and opening price of Rs 46,973 on the MCX. Silver futures traded 0.12 percent higher at Rs 70,517 per kg. The prices opened at Rs 70,675 as compared to the previous close of Rs 70,432 per kg.

“The gold prices gained on the back of a weak US dollar and hopes optimism over a massive US stimulus package. The focus will be on comments from the US Federal Reserve Chairman Jerome Powell later today,” said Ajay Kedia, director, Kedia Commodity Comtrade.

International gold climbed a one-week peak on Tuesday, bolstered by a weaker dollar and a retreat in US Treasury yields, while concerns of rising inflation further boosted bullion’s appeal as a hedge against inflation.

Spot gold rose 0.4 percent to $1,815.52 per ounce, after hitting its highest since February 16 at $1,815.63 earlier in the session. US gold futures gained 0.3 percent to $1,813.50.

The dollar hit an over one-month low, making gold affordable for other currency holders, as investors await US Federal Reserve Chairman Jerome Powell’s testimony to Congress later in the day.

US Treasury yields eased from a near one-year peak on Monday, reducing the opportunity cost of holding non-yielding bullion.

“On MCX, gold may find support at Rs 46,640 level, while resistance is placed at Rs 47,280 level. Silver may find support at Rs 69,600 level and resistance at Rs 72,200 level,” Kedia said.

Meanwhile, strength in the Indian rupee amid buying in the domestic equity market capped gains in the yellow metal.

Here are gold rates across major cities:

Source: Kedia Advisory

Here are silver rates across major cities:

Source: Kedia Advisory

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First Published:Feb 23, 2021 11:13 AM IST