Gold Metal trades below Rs 49,000

Gold Metal trades  below Rs 49,000

India Gold MCX February futures continued its southward journey on Monday tracking a weak trend seen in the international spot prices largely on account of on strong dollar and firm US Treasury Yields.

Spot gold was down to $1,844.51 per ounce after having touched its lowest since December 15 on Friday. US gold futures gained to $1,844, said a Reuters report.

U.S. Treasury yields held firm after a plunge in payrolls last month raised expectations of more federal spending to aid the virus-battered economy, helping the dollar rise 0.2% against rival currencies, added the report.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading lower by 0.41 percent at Rs 48,766 for 10 grams at 0920 hours. March silver was trading 0.44 percent lower at Rs 63,948 a kilogram.

Experts are of the view that the trend in precious metal could remain week. Crucial support for Gold is placed 48200-48600 while Silver has support at Rs 63200-62500 levels.