Gold was trading lower in the Indian markets on the toes ofthe international markets.
On MCX (Multi-Commodity Exchange), June contracts dipped0.15% to Rs 47,365 for 10 grams early in the day on Friday.
The other precious metal, which is also used as anindustrial metal, silver too was trading 0.11% lower at Rs 70,399 per kilogram.
The decline of gold is due to US Treasury yields rising toan eight-week high and the dollar remaining firm after a rise which surprisedalmost everyone.
Amit Khare, AVP – Research Commodities, GanganagarCommodities Limited claims, “Currently, the 10-year note is yielding 1.699%,gaining seven basis points from the open when notes were fixed at 1.693%. Goldfutures incurred a strong selloff trading to a low today of $1813 beforerecovering slightly. A tremendous factor to today’s decline in gold besideshigher yields was dollar strength which gained approximately three-quarters ofa percent and is currently fixed at 90.785. It is likely that gold’strajectory for the remainder of this year is up, rather than down.”
He continues, “Technically, MCX Gold June could see sidewaysto marginal downside momentum within the range of Rs 47,150-47,600 level.Technically, MCX Silver July holds a resistance at Rs 71,000-72,300 levels.Support is at Rs 70,000-68,900 levels. MCXBULLDEX May could trade on a negativenote but within the range of Rs 14, 750-15,000 levels.”
He believes that the negative trends seen in both theprecious metals on Thursday were due to profit booking.
He is hopeful that the insatiable love of gold by Indians onthe auspicious day of Akshay Tritiya is more likely to push the prices of gold upwards by the evening.
Thus, he advises to buy gold at lower prices to benefit fromthe upcoming price rise in gold.
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