Gold price in India edged lower on Monday. On the Multi-Commodity Exchange (MCX), gold futures dropped 0.10 per cent to Rs 50,726 for 10 grams at 0905 hours on July 11. Silver futures tumbled 0.14 per cent to Rs 57,050 for a kilogram on Monday. Rising dollar have kept the yellow metal under pressure.
In the international market, spot gold price dipped 0.10 per cent $1,740.16 per ounce at 0045 GMT. US gold futures dipped 0.2 per cent to $1,739.50. The dollar steadied near its highest level in around 20 years. Benchmark US 10-year Treasury yields held near an over one-week high hit on Friday.
Investors will keenly follow the United States Consumer Price Index numbers for June, scheduled this week. Economists said that consumer price numbers will hit a fresh 40-year high of 8.8 per cent in June, according to Reuters poll. The monthly core index is seen slipping, however, to 5.8 per cent from 6.0 per cent in May.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.11 per cent to 1023.27 tonnes on Friday from 1024.43 tonnes on Thursday.
“International spot and COMEX gold and silver prices have started marginally weaker on Monday morning in Asian trade as the dollar ticked higher, continuing to weigh on demand for bullion. Data from US CFTC showed that speculators cut net longs in COMEX gold by 19,831 contracts to 26,806, while speculators switched to net short position in COMEX silver of 8,309 contracts cutting to 9,301 in week to July 05. Today’s range of COMEX August gold is $1714.30-$1754.00. Domestic gold futures prices could start flat to marginally weaker on Monday morning tracking overseas markets. Today’s range of MCX August gold is Rs 50,100-51,045,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Today’s range of COMEX September silver is $18.732-$19.439. Domestic silver futures prices could start flat to marginally weaker on Monday morning tracking overseas markets. A slightly weaker rupee could cap downside. Today’s range of MCX silver September Rs 56,066-57,526,” Iyer added.
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