Gold prices eased in the domestic futures market on January 8 as investors booked profits amid a stronger US dollar and rising bond yields.
On the Multi Commodity Exchange (MCX), gold February futures were trading 0.25 percent lower at ₹1,37,663 per 10 grams at 10 am. Silver March futures also slipped, down 0.33 percent at ₹2,49,779 per kg.
Precious metals are facing selling pressure as the dollar index hovers near a two-week high and the US 10-year Treasury yield rebounds from a recent one-week low.
A stronger dollar makes gold costlier for overseas buyers, while higher bond yields increase the opportunity cost of holding non-interest-bearing assets like gold. This combination has weighed on demand.
In the previous session, MCX gold February futures fell 0.7 percent, while silver futures saw a sharper fall of over 3 percent.
Aksha Kamboj, Vice President at the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, said gold continues to attract investment demand despite short-term profit booking.
She noted that safe-haven buying remains strong amid global uncertainty, even as jewellery demand stays muted. Any upside, however, is likely to be gradual.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, international gold has support at $4,430 and $4,400 per troy ounce, while resistance is seen at $4,484 and $4,522. Silver support lies at $76.35 and $74, with resistance at $80 and $82.70.
On MCX, gold has support at ₹1,37,200 and ₹1,36,000, while resistance is placed at ₹1,38,800 and ₹1,39,500. Silver support is seen at ₹2,46,600 and ₹2,42,000, with resistance at ₹2,54,000 and ₹2,58,800.
Jain advises traders to keep stop losses below ₹1,36,000 for gold and ₹2,46,000 for silver on a closing basis. If these levels hold, a stronger upside move could emerge next week.
Jigar Trivedi of Reliance Securities said MCX gold could test ₹1,37,000 per 10 grams in the near term, tracking weakness in global markets.
(By arrangement with livemint.com)
