Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Tuesday following weakness in international spot prices amid strength in US dollar, analysts said.

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At 10:45 am, gold futures for June delivery fell 0.35 percent to Rs 44,542 per 10 grams as against the previous close of Rs 44,698 and the opening price of Rs 44,590 on the MCX. Silver futures traded 0.46 percent lower at Rs 63,880 per kg. The prices opened at Rs 63,976 as compared to the previous close of Rs 64,174 per kg.

“The gold prices declined on a firm dollar and the spike in yields on US Treasury Notes. The premium in the domestic gold prices in April and June contracts rose to a historical high due to the year-end book closing and rollover. The yellow metal is expected to trade sideways to negative,” said Ajay Kedia, director, Kedia Advisory.

International gold prices slipped on Tuesday to their lowest in more than two weeks, weighed down by a firm US dollar and Treasury yields as expectations of a swift economic turnaround grew with vaccination rates gaining traction, a Reuters report said.

Spot gold was down 0.3 percent at $1,706.86 per ounce. Earlier in the session, the bullion touched $1,704, its lowest since March 12. US gold futures were down 0.4 percent at $1,708 per ounce.

The dollar climbed to a one-year high against the yen on Tuesday as investors fretted about the potential fallout from the collapse of a hedge fund, identified as Archegos Capital.

Metals futures face a holiday-shortened week. Commodity and other financial markets will be closed on Good Friday this week.

On the domestic front, weakness in the rupee may limit losses in the yellow metal. We may see short covering in the dollar due to the year-end demand by exporters and importers. This is expected to keep the rupee weak, Kedia added.

“On MCX, support for gold June contract is seen at Rs 44,100 and resistance is placed at Rs 44,950. Silver May futures is likely to find support at Rs 63,300 and resistance at Rs 64,800,” Kedia said.

Here are gold rates across major cities:

Here are silver rates across major cities:

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First Published:Mar 30, 2021 10:56 AM IST