Gold futures in Tuesday's trade (March 9, 2021) gained 0.38% or Rs. 168 to Rs. 44386 as on 1:00 pm. Silver futures in line were also up by 0.3 or Rs. 208 to Rs. 66060 per kg.
US Treasury Secretary Janet Yellen said President Biden's $1.9 trillion coronavirus relief stimulus will provide enough resources for fuelling a 'very strong' US economic recovery. On a YTD basis, gold has fallen by Rs. 5500 and from record highs hit in August has fallen as much as Rs. 12000 or close to 20%.
In the international markets, gold prices also increased owing to strength in the US dollar and higher US yields. Gold was trading at $1687.9 per ounce. The US treasury yield remained at a 12-month high as concerns of inflation remained that will be fuelled on massive US stimulus.
The Federal Reserve also announced that it has extended its emergency liquidity facility by 3 months to June 30 that will enable banks to offer relief to small businesses under the Paycheck Protection Program.
SMC Global that gold prices rebounded from a nine-month low as dollar saw some weakness and also the passage of the US relief bill by the Senate boosted yellow metal's appeal as a safe-haven.
"Gold may find support near Rs 44,100 and resistance at Rs 44,680. Silver (May) may trade with higher volatility where it may find support near Rs 65,500 and resistance at Rs 66,400," it said.