The dollar hit an over one-month low, making gold affordable for other currency holders, as investors await US Federal Reserve Chairman Jerome Powell’s testimony to Congress later in the day.
Gold futures on MCX were up 0.13 per cent or Rs 61 at Rs 46,962 per 10 grams. Silver futures rose 0.17 per cent or Rs 121 to Rs 70,553 per kg.
“Gold traded higher supported by increased inflation concerns, weaker US dollar, correction in bitcoin price and prospect of additional US stimulus. However, weighing on price is higher bond yields, continuing ETF outflows and general improvement in global economic outlook,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold prices in the national capital jumped Rs 278 to Rs 46,013 per 10 grams on Monday, supported by recovery in international prices even as rupee appreciation capped the price of the precious metal. In tandem, silver prices witnessed an increase of Rs 265 to Rs 68,587 per kg.
“We expect gold prices to trade sideways to up with resistance at $1,830 per ounce and support at $1,790 per ounce. MCX Gold April futures support lies at Rs 46,500 per 10 gram and resistance at Rs 47,400 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC securities.
Gold climbed a one-week peak on Tuesday, bolstered by a weaker dollar and a retreat in US Treasury yields, while concerns of rising inflation further boosted bullion’s appeal as a hedge against inflation.
Spot gold rose 0.4 per cent to $1,815.52 per ounce by 0304 GMT, after hitting its highest since Feb. 16 at $1,815.63 earlier in the session. US gold futures gained 0.3 per cent to $1,813.50.
Silver rose 0.3 per cent to $28.23 an ounce, having earlier hit a three-week peak at $28.31. Platinum climbed 0.1 per cent to $1,273.10, while palladium gained 0.5 per cent to $2,406.41.