Gold Futures Decline Marginally, Silver Rises 1% Amid Weak US Dollar

In international market, gold prices extended gains on Tuesday, hitting their highest level in more than three-and-a-half months.

Gold Futures Decline Marginally, Silver Rises 1% Amid Weak US Dollar

Holdings of SPDR Gold Trust rose 0.7% to 1,035.93 tonnes on Monday, their highest since late-March.

Gold, Silver Price Today: Gold futures for delivery in June slipped marginally (as much as 0.25 per cent) to hit an intraday low of Rs 48,352 per 10 grams on the Multi Commodity Exchange. In spot market, fine gold or 24 carat gold was sold at Rs 48,150 per 10 grams, gold with purity of 22 carat was priced at Rs 46,510 per 10 grams, 18 carat gold was priced at Rs 38,520 and 14 carat gold was sold at Rs 32,020 per 10 grams, according India Bullion and Jewellers Associations (IBJA).

"Gold trades near 3-month high supported by weaker US dollar, dovish Fed comments, increased tensions between Israel and Palestine and pick up in ETF buying. However, weighing on price is improving the virus situation in US and Europe and concerns about consumer demand in India. Gold may trade with a positive bias on the back of weaker US dollar, however any stability in the equity market may make it vulnerable to profit taking," Ravindra V Rao, VP-Head Commodity Research, Kotak Securities told NDTV.

In international market, gold prices extended gains on Tuesday, hitting their highest level in more than three-and-a-half months, as a weaker US dollar and growing inflationary pressure bolstered the metal's appeal as an inflation hedge.

Spot gold was up 0.1 per cent at $1,868.27 per ounce by 8:44 am, after hitting its highest since January 29 at $1,873.41 earlier in the day. US gold futures were steady at $1,868.30.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.7 per cent to 1,035.93 tonnes on Monday, their highest since late-March.

Back home, silver was witnessing buying interest as silver futures for delivery in July rose nearly 1 per cent to hit an intraday high of Rs 74,052 on the Multi Commodity Exchange. In spot market silver was priced at Rs 71,735 per kilogram according to IBJA. In international market, silver jumped 0.8 per cent to $28.40 per ounce, after hitting its highest since February 2 earlier in the session.

Palladium gained 0.4 per cent to $2,911.63 and platinum climbed 0.1 per cent to $1,241.