Gold Prices Today: Yellow metal rises by over Rs 100 as dollar and bond yields fall

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Bullion futures gained on October 4 bucking the global trend after some profit taking in US dollar diverted a few funds to precious metals.

Gold futures traded up 0.22 percent or Rs 112 to Rs 51,272 per 10 grams. Silver futures climbed 1.2 percent or Rs 729 to Rs 61,640 per kg.

“At MCX, gold is having support at Rs 50,950-50,740 and resistance at Rs 51,380-51,700 while silver is having support at Rs 60,200-59,500 and resistance at Rs 61,660-62,300,” said Manoj Kumar Jain of Prithvifinmart Commodity Research. “We suggest buying gold around Rs 51,000 with a stop loss of Rs 50,770 for target of Rs 51,660.”

According to India Bullion and Jewellers Association, highest purity gold traded at Rs 50,30 per 10 grams in the spot market. Highest purity silver was at around Rs 56,338 per kg.

ICICI Securities in a note said MCX gold prices are expected to trade with a negative bias due to strengthening US dollar index and rising US 10-year treasury yields. “Currently, it is trading below support levels of 200 DMA, which is around Rs 50,500. As long as it sustains below this level, it is likely to move down towards Rs 49,000 in the coming month,” the broker added.

On the other hand, Jain believes both precious metals are likely to remain firm and any downside corrections could be a buying opportunity looking at the change in fundamentals.

Globally, gold prices edged lower, having touched a nearly three-week high earlier in the session. Spot gold was down 0.2 percent at $1,696.04 per ounce as of 0135 GMT, having touched highest since September 14 at $1,702.39 earlier in the day. US gold futures rose 0.2 percent to $1,705.7. Spot silver dipped 0.5 percent to $20.64 per ounce, platinum dropped 0.3 percent to $899.50 and palladium was up 0.7 percent at $2,236.84.

Jain said in the international market gold has support at $1,684-1,670 and resistance at $1,718-1,734 per troy ounce. Silver has support at $20.20-19.84 and resistance at $20.88-21.30 per troy ounce.

Meanwhile, India has raised total import duty on platinum to 15.4 percent from 10.75 percent, the government said in a notification on Monday, seeking to bring parity in import duty structure between gold and platinum.