Gold prices hit a two-month high on Friday, boosted by a weaker dollar and a pullback in Treasury yields. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.20% at Rs 47,691 for 10 grams at 12.15 pm. July silver futures were trading at Rs 71,630 a kilogram at 12.15 pm.
The dollar index slipped to a one-week low against its rival, making gold less expensive for other currency holders, according to news agency Reuters.
“We expect gold prices to trade sideways to up for the day with COMEX gold support at $1790 and resistance at $1840 per ounce. MCX Gold June support lies at Rs. 47200 and resistance at Rs 47,691 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was up 0.2% at $1,818.73 per ounce by 0652 GMT, after hitting its highest since Feb. 16 earlier in the session. Bullion gained nearly 3% so far this week. US gold futures rose 0.2% to $1,818.80.
“The weaker dollar and U.S. Treasury yields dropping below 1.6% has helped gold prices to go above $1,800,” Brian Lan, managing director at dealer GoldSilver Central said, Reuters reported.
“The US jobs data is very important point … if data comes out really good, we can see people being more positive on the economy and it might lead to Federal Reserve increasing the interest rates earlier than expected, which will impact gold,” he told.
Spot gold may test a resistance at $1,830 per ounce, according to Reuters technical analyst Wang Tao.
Palladium rose 0.6% to $2,963.43 per ounce, after hitting an all-time high of $3,017.18 earlier this week.
(With inputs from agencies)
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