Gold futures on MCX added 0.16 per cent or Rs 86 to Rs 52,499 per 10 grams. However, silver futures were trading marginally lower by 0.07 per cent or Rs 45 at Rs 67,080 per kg.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities said that gold is trading in a narrow range as support from renewed weakness in equities, growth worries, inflation concerns and geopolitical tensions is countered by the monetary tightening stance of the Fed and other central banks.
“ETF outflows also show profit taking by investors. Gold has stabilized after recent losses and mixed factors may keep the price in a range, however, the prospect of Fed’s tightening may keep pressure on price,” he added.
In the spot market, the highest purity gold was sold at Rs 52,540 per 10 grams while silver was priced at Rs 67,330 per kg on Thursday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have dropped almost Rs 1,110 per 10 grams in the last four sessions, whereas Silver has tumbled about Rs 2,800 per kg in the same period of review.
Ravi Singh, Vice President and Head of Research, ShareIndia said that gold may remain rangebound as safe-haven demand stemming from the Ukraine crisis and its potential impact on the global economy will get countered by a stronger dollar and a rise in yields.
Echoing similar views, Pritam Patnaik, Head – Commodities, Axis Securities said that in the short term it’s difficult to chart a bullish strategy for gold. It’s expected to trade in a tight range, he said.
Rahul Kalantri, VP Commodities, Mehta Equities said gold has support at $1,934-1,922, while resistance at $1962-1972. Silver has support at $24.200-23.88, while resistance is at $24.74-25.05.
“In rupee terms, gold has support at Rs 52,220–52,050, while resistance is at Rs 52,650–52,820. Silver has support at Rs 66,550- 66,270 while resistance is at Rs 67,710–68,120,” he added.
Spot gold was down 0.1 per cent at $1,949.33 per ounce, as of 0242 GMT. US gold futures were up 0.2 per cent at $1,952. Gold is down about 1.3 per cent so far this week.
Spot silver fell 0.6 per cent to $24.50 per ounce, and platinum eased 0.2 per cent to $966.56, with both poised for weekly dips. Palladium rose 0.4 per cent to $2,431.69.