Data from the Department of Labor showed job openings in the United States rose by nearly a million to a new record in April. U.S. small business confidence edged down last month, the first drop in four months, as a nationwide labor shortage and inflation concerns weighed on the economic outlook business owners.
Market participants are awaiting the U.S. Consumer Price Index report due Thursday for clarity. The ECB is expected to hold its policy meeting on the same day. Both events will be watched closely by investors, who are trading the yellow metal as a hedge against inflation.
Benchmark 10-year Treasury yields fell to their lowest level in more than a month, reducing the opportunity cost of holding non-interest-bearing gold. The Dollar Index was wavering a little above 90.
The demand for physical gold is expected to increase in the coming days in the second largest gold market in the world. The lifting of state restrictions bodes well for the jewelry industry.
Gold futures on Multi Commodity Exchange (MCX) rose 0.07% or Rs 35 to Rs 49,162 for 10 grams. Silver futures gained 0.25% or Rs 175 to Rs 71,406 per kg.
“COMEX gold is trading near $ 1897 / oz after falling 0.2% yesterday. Gold is volatile as supported by falling bond yields, volatile stocks are thwarted by a bullish report on US job openings, lack of ETF buying and weak demand for consumers in India ”, Ravindra Rao, CMT, EPAT, Vice President of Commodity Research, Kotak Securities.
On the spot market, the highest purity gold was sold at Rs 49,031 while silver was priced at Rs 71,331 on Tuesday, according to the Indian Bullion and Jewelers Association.
“Gold may remain volatile reflecting volatility in the equity market and the US dollar, but the general bias may be upward unless the US dollar appreciates sharply.”
“We expect gold prices to trade sideways lower for the day with COMEX gold support at $ 1880 and resistance at $ 1910 per ounce. MCX Gold support Aug stands at Rs. 49,100 and resistance at Rs. 49,700 per 10 grams, “said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.1% to $ 1,893.78 an ounce at 12:45 GMT. US gold futures rose 0.1% to $ 1,896.60 an ounce.
Silver was flat at $ 27.63 an ounce, palladium gained 0.2% to $ 2,812.30, while platinum was down 0.1% to $ 1,160.81.