New Delhi: Gold and silver prices rebounded on Monday in line with global trends after witnessing high volatility last week. On the Multi-Commodity Exchange (MCX), April gold futures were trading up 0.17% at Rs 44,828 for 10 grams at 12:23 pm. The yellow metal peaked at Rs 44,964 during the day. May silver futures were also trading 0.32% higher at Rs 67,058 per kilogram after hitting an intraday high of Rs 67,360.
Analysts say MCX gold has support near the Rs 44,600 levels while the metal faces resistance at Rs 45,200. Meanwhile, silver is expected to take support at Rs 66,000 and resistance at Rs 68,200.
Spot gold prices on the international market rose after the passage of the US $ 1.9 trillion stimulus bill, fueling inflation fears. As gold is seen as a hedge against inflation, the yellow metal witnesses buying. However, the gains have been limited as the recent rise in bond yields has increased the opportunity cost of holding interest-bearing bullion.
Continued ETF exits also put pressure on gold. SPDR Gold Trust, the world’s largest gold exchange-traded fund or ETF, said its holdings fell 0.3% to 1,052.07 tonnes on Friday from 1,055.27 tonnes on Thursday.
In the international market, spot gold prices rose 0.19% to $ 1,723 an ounce with silver trading 0.23% higher at $ 25.96 an ounce. The market’s attention has now shifted to the US Federal Reserve’s monetary policy results, which will be released on March 17, as the new stimulus package could boost inflation.
On March 12, gold and silver prices stabilized on a mixed note in the international market.