Gold traded lower on MCX as investors booked profit on Thursday after yesterday’s sharp 6% surge following a hike in import duties for precious metals. Gold’s June futures fell 0.18% to Rs. 1,61,887 per 10 grams. Silver's July futures fell 0.62% to Rs. 2,98,373 per kg.
In the previous session gold hit the upper circuit as the central government raised import tariffs on gold and silver to 15% from 6% in an effort to reduce overseas purchases and curb pressure on forex reserves.
Meanwhile, oil prices rose. Brent crude futures gained 0.34% to $106 a barrel. US West Texas Intermediate (WTI) advanced 0.43% to $101.5 a barrel.
24K gold rose by Rs. 33 to Rs. 1,62,330 per 10 grams. 22K gold advanced by Rs. 30 to Rs. 1,48,800. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,62,330, while Delhi was at Rs. 1,62,260, and Chennai at Rs. 1,63,680.
US gold prices rose on Thursday, fueled by a weaker dollar, as investors focused on talks between US President Donald Trump and Chinese President Xi Jinping.
Spot gold rose 0.3% to $4,699.87 per ounce. US gold futures for June delivery were steady at $4,706.90.
Spot silver fell 0.4% to $87.64 per ounce, platinum gained 0.7% to $2,151.38, and palladium was up 0.4% at $1,506.19.
Also Read: India Hikes Gold, Silver Import Duties Amid Rising Economic Pressure
"Gold seems to be consolidating at the moment as everybody is looking at what's going to happen in the high-level talks between the U.S. and China," said GoldSilver Central Managing Director Brian Lan.
"Gold is a bit downward-biased and I think that is also a window for investors who are looking to come into the metal," Lan added.
Internationally, gold has support at $4,681 and $4,634, while resistance is at $4,740 and $4,770 per troy ounce, and silver has support at $86.60 and $84.00, while resistance is at $92 and $95 per troy ounce.
On MCX, gold has support at Rs. 1,60,200 and Rs. 1,58,000 and resistance at Rs. 1,64,400 and Rs. 1,66,600, while silver has support at Rs. 2,94,400 and Rs. 2,88,000 and resistance at Rs. 3,04,000 and Rs. 3,10,000.