Due to poor global cues and following international markets, gold and silver were seen trading lower in India. Gold and silver futures dropped as firm US treasury yields continued to weigh on the non-yielding bullion. In the previous seven days, this was their sixth day of decline.
After a dramatic drop last week, benchmark U.S. Treasury yields have stayed near 1.4 percent, rendering non-interest-paying gold unattractive to investors. According to Reuters, spot gold prices strengthened to $1,734.16 per ounce after dropping to their lowest level since June 15 at $1,706.70 on Tuesday.
Experts believe that gold rates may continue to swing with the US dollar, but a sustained rise is doubtful before bond yields dramatically fall or meaningful US stimulus steps are introduced.
The Senate will begin discussing the US stimulus bill, which was approved by the House of Representatives last week and is worth $1.9 trillion. In international markets on Tuesday, gold and silver prices settled on a brighter note.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading lower by 0.35 or Rs 161 percent at Rs 45,387 for 10 grams at 11.30 Am. May silver futures were trading 0.55 percent lower at Rs 68,835 a kilogram. Gold futures were down 0.11 percent in morning trade to Rs 45,500 per 10 gram, and they continued to fall until noon trade.
"At MCX, Gold has support at Rs 45330-45100 and resistance is placed at Rs 45770-45920. Silver has support at Rs 68800-68300 and resistance at Rs 69500-70200 levels. We suggest buying gold around Rs 45300 with a stop loss of Rs 45050 on a closing basis for the targets of Rs 45800," "Manoj Jain, Director at Prithvi Finmart was quoted saying in a Moneycontrol report