Gold futures on MCX were trading marginally higher by 0.09 per cent or Rs 42 at Rs 47,541 per 10 gram. Silver futures were up 0.40 per cent or Rs 262 at Rs 65,869 per kg.
Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, translating into a higher opportunity cost for holding bullion which pays no interest.
Ravi Singh, Vice President & Head of Research, Share India, said that buying in bullion is likely to pace up as the Indian festive season and the marriage season has started. He advised traders to create fresh long positions on dips.
According to data from the commerce ministry, gold imports increased to about $24 billion during April-September 2021 from $6.8 billion in the previous year, ahead of the busy festive season.
In the spot market, highest purity gold was sold at Rs 47,548 per 10 gram while silver was priced at Rs 64, 496 per kg on Wednesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained about Rs 900 per 10 gram in the last two weeks, whereas silver has jumped about Rs 3,600 per kg during the period under review.
“We expect gold prices to trade up for the day with COMEX Spot gold support at $1,770 and resistance at $1,800 per ounce. MCX Gold December support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.2% to $1,784.96 per ounce by 0146 GMT. US gold futures were little changed at $1,784.60.
Spot silver rose 0.3% to $24.33 an ounce, while platinum gained 0.1% to $1,051.12 and palladium fell 0.3% to $2,066.53.