Gold, silver futures edge higher on stimulus prospects

NEW DELHI: Gold and silver futures edged higher in Tuesday’s trade on optimism over a stimulus package passed by the US Senate.

Gold futures for April delivery rose 0.30 per cent to Rs 44,351 per 10 grams. Silver futures for May delivery were trading at Rs 66,111 per kg, up 0.39 per cent.

US Treasury Secretary Janet Yellen said President Joe Biden’s $1.9 trillion coronavirus aid package will provide enough resources to fuel a “very strong” US economic recovery. The US House of Representatives will take up by Wednesday the Senate version of the coronavirus relief package, Speaker Nancy Pelosi said.

Globally, gold prices hovered around a nine-month low, as a firmer dollar and higher US Treasury yields continued to diminish the metal’s appeal. Spot gold was little changed at $1,681.81 per ounce, after hitting its lowest since June 5 at $1,676.10 on Monday. US gold futures climbed 0.1 per cent to $1,679.30.

SMC Global said that gold prices bounced back on Monday from a nine-month low, as the dollar softened, while passage of a long awaited US coronavirus stimulus package boosted the bullion’s appeal as a hedge against inflation.

“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.

Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.5 per cent to 1,063.43 tonnes from 1,069.26 tonnes on Friday.





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