Gold and silver moved higher in Indian markets, tracking positive global cues. On MCX, February gold futures were up 0.74% to ₹49,410 per 10 gram while silver prices gained 0.57% to ₹66,279 per kg. In (gold price today) the previous session, gold rates had eased 0.53%. After a strong 25% gain last year, gold prices have wavered this year amid a a rise in US bond yields and rebound in US dollar.


"Prices remain volatile due to recovering US dollar and hopes of further economic stimulus measures (gold price today)  from the US. Increasing virus infections in many western countries may also lift the safe-haven demand of the commodity," said Hareesh V, Research Head Commodities at Geojit Financial Services.

If the support of $1800 remains undisturbed, he added, "we can expect a recovery pullback in prices. (gold price today) However, the immediate downside turnaround point is seen at $1780."

In global markets, gold rates edged higher today, boosted by rising coronavirus cases worldwide. The recent rally in the US Treasury yields and dollar also paused, helping support gold at lower levels. Spot gold rose 0.1% to $1,856.86 per ounce. A weaker dollar makes gold cheaper for holders of other (gold price today) currencies while lower yields decrease the opportunity cost of holding non-yielding assets like gold. The dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.14% to 89.938.

Increasing inflation expectations also helped gold as US President-elect Joe Biden is set to release plans(gold price today)  for a multitrillion-dollar stimulus package.

Among other precious metals, silver was steady at $25.57 an ounce while platinum rose 0.3% to (gold price today)  $1,078.80.

Though further gains in US bond yield could be a headwind for gold, the precious metal could get support from inflation concerns amid stimulus packages and recovering global economy, say analysts.

"Weighing on price is continuing progress on vaccine front with vaccination process underway in many countries. Gold may witness choppy trade as support from worsening virus situation and hopes of higher stimulus is countered by gains in US dollar and higher bond yields however we maintain buy on dips view as virus risks may keep expectations high for need of additional stimulus," Kotak Securities said in a note.

Higher bond yields also reduce appeal for gold which yields no interest. "Supporting silver price is improving industrial demand outlook and hopes of higher US stimulus. Silver may witness choppy trade along with gold amid mixed factors however generally improving demand outlook may result in some buying interest," Kotak Securities said on silver.