Gold price today: Yellow metal marginally higher; silver tops Rs 67,000

NEW DELHI: Gold prices in India bucked the global trend to trade marginally higher on Monday. However, gains were capped as the US dollar held firm and investors awaited the Fed's FOMC meeting later in the week.

Gold futures on MCX were up 0.19 per cent, or Rs 91, at Rs 47,625 per 10 gram. Silver futures were trading 0.22 per cent, or Rs 145, higher at 67,169 per kg.

Gold prices in India are retreating lower, mirroring trends in the international markets. Gold prices in global markets are hovering near $1,800 per ounce. It is expected that the yellow metal is likely to regain its shine in domestic markets too.

Ravindra Rao, VP - Head Commodity Research at Kotak Securities said that gold inched up amid choppiness in US dollar, increasing virus concerns, US-China tensions and China’s crackdown on technology firms.

"However, weighing on price is continuing ETF outflows, weaker consumer demand and uncertainty ahead of the Fed meeting this week. Gold may remain supported near $1800/oz until dollar is steady," he added.

In the spot market, highest purity gold was sold at Rs 47,703 while silver was priced at Rs 67,039 on Friday, according to the Indian Bullion and Jewellers Association.

Physical gold prices have declined about Rs 600 per 10 gram in the last one week, whereas silver has shed about Rs 2,000 per kg during the period.

Trading strategy
"We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,790 and resistance at $1,820 per ounce. MCX Gold August support lies at Rs 47,200 and resistance at Rs 47,900 per 10 gram," said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold fell 0.1% to $1,799.89 per ounce by 0110 GMT. US gold futures fell 0.2% to $1,798.90 per ounce.

Silver rose 0.1% to $25.18 per ounce, while palladium and platinum were flat at $2,671.77 and $1,061.55, respectively.