Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Thursday following a muted trend in the international spot prices weighed down by a rebound in the US dollar and higher treasury yields.

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At 10:50 am, gold futures for June delivery gained 0.02 percent to Rs 48,796 per 10 grams as against the previous close of Rs 48,784 and the opening price of Rs 48,751 on the MCX. Silver futures traded 0.09 percent lower at Rs 71,346 per kg. The prices opened at Rs 71,337 as compared to the previous close of Rs 71,411 per kg.

“A rebound in US dollar and higher bond yields is weighing on precious metal prices. Strength in the rupee amid buying in the domestic equity market is also pressurising gold. The US gross domestic product and jobless claims data will be watched,” said Ajay Kedia, Director, Kedia Advisory.

International gold prices retreated from a 4-1/2-month high on Thursday, hurt by an uptick in the US dollar and bond yields, while investors awaited key economic readings out of the United States this week, Reuters reported.

Spot gold was down 0.1 pecent at $1,894.88 per ounce, after hitting its highest since January 8 at $1,912.50 on Wednesday. US gold futures declined 0.3 percent to $1,898 per ounce.

The dollar index rose to a one-week high against rivals, making gold more expensive for other currency holders. Benchmark US Treasury yields rose to 1.58%, increasing the opportunity cost of holding non-interest bearing gold.

Market participants now await the monthly US personal consumption report due on Friday to gauge inflationary pressure.

Federal Reserve officials have recently downplayed rising price pressures and affirmed their support to keep monetary policy accommodative for some time.

“The trend in gold prices looks positive and hence, investors should deploy buy on dips strategy,” Kedia said.

“On MCX, gold may find support at Rs 48,500 and resistance at Rs 49,280. Support for silver is seen at Rs 70,600 and resistance at Rs 73,200,” he added.

Here are gold rates across major cities:

Here are silver rates across major cities:

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First Published:May 27, 2021 11:01 AM IST