Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Wednesday as the international spot prices fell on a stronger dollar and spike in US Treasury yields, analysts said. Silver prices also declined.

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At 10:25 am, gold futures for June delivery fell 0.16 percent to Rs 44,353 per 10 grams as against the previous close of Rs 44,423 and the opening price of Rs 44,305 on the MCX. Silver futures traded 0.68 percent lower at Rs 62,695 per kg. The prices opened at Rs 62,800 as compared to the previous close of Rs 63,124 per kg.

“There are expectations that US economic growth will accelerate in the coming months as the US consumer confidence surged in March to its highest level since the start of the COVID-19 pandemic. Along with this, developments over COVID-19 vaccination, strength in dollar and rise in yields on US Treasury notes are also denting the safe-haven appeal for gold,” said Amit Sajeja, ‎Vice President, Research- Commodities & Currencies, ‎Motilal Oswal.

International gold prices inched lower on Wednesday as data showing a faster-than-expected growth in China’s factory activity weighed on the metal’s safe-haven appeal, while a surge in US Treasury yields added further pressure, a Reuters report said.

Spot gold was down 0.1 percent to $1,683.56 per ounce. US gold futures were flat at $1,685.10 per ounce.

The dollar index rose to fresh four-and-a-half-month high and crossed the 93-mark. The US 10-year Treasury yield rose as far as 1.776 percent on Tuesday, its highest since January 22.

“We expect gold and silver prices to remain weak going ahead, hence, selling gold on rally is advised. On MCX, gold may see support at Rs 43,800 and resistance at Rs 44,600. Silver has support at Rs 61,000 and resistance at Rs 63,500,” Sajeja said.

Here are gold rates across major cities:

Source: Kedia Advisory

Here are silver rates across major cities:

Source: Kedia Advisory

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