Gold rates fell in the Indian marketplace on Friday as strength in the Indian rupee against the US dollar weighed on the yellow metal. On MCX, gold April futures had been trading Rs 269 or .60 per cent down at Rs 44,610 per 10 gram as against the prior close of Rs 44,879. While silver May futures had been ruling at Rs 66,791 per kg, down Rs 754 or 1.12 per cent, as compared to the prior close of Rs 67,545 per kg on the Multi Commodity Exchange. From a record higher of Rs 56,191 per 10 gram on MCX in August 2020, gold rates have plunged Rs 11,581 per 10 gram or 20.61 per cent.
The elevated US Treasury yields continue to stay a headwind for the valuable metal, says Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers. “Amid strength in rupee, we expect the yellow metal to stay weak,” Trivedi added.
Rupee gains .52% YTD against US dollar
Indian Rupee was noticed trading at 72.68 against the US dollar, up .30 per cent or .22 paise. On a year-to-date (YTD) basis, the rupee has risen more than half a per cent against the US dollar. On Friday, it opened at 72.66, as compared to a prior close of 72.91. The House of Representatives gave the final approval to one of the biggest financial stimulus measures in US history, a sweeping $1.9 trillion COVID-19 relief bill that offers President Joe Biden his initially main victory in workplace. The holding at the SPDR GOLD ETF has also continued to drift reduce yesterday also, from 1,060 tonnes on Wednesday to 1,055 tonnes on Thursday.
Despite the weak US Dollar, gold in COMEX failed to move up displaying a shift in trend. Market sentiments have shifted from positive to adverse following current gains in US fixed revenue bonds and notes, coupled with a stronger US dollar, increasing US equities markets and sturdy gains in Bitcoin, says Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities. “Because of these reasons, we are seeing continuous outflow in Gold ETFs. Money managers have liquidated their long and added fresh short positions, a development that saw the long-short ratio drop below 2 for the first time since May 2019,” Patel told TheSpuzz Online.
Check for these levels in MCX gold next week
Patel believes that any additional weakness may possibly emerge if gold falls beneath $1680 in COMEX or Rs 44000 in MCX. Any recovery in gold is only anticipated above Rs 45,600 or above $1760 in COMEX. “Till then we expect prices to remain subdued within the range of Rs 44,200-45,200 for next week,” he added.
While globally, gold rates retreated on Friday as firmer US bond yields and a sturdy dollar weighed on the metal, but bullion was on course for its greatest weekly acquire in seven. Spot gold eased .3 per cent to $1,716.86 per ounce even though US gold futures lost .4 per cent to $1,716.10.
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