Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday as optimism over a potential COVID vaccine continued to dampen the safe-haven appeal for the precious metal, analysts said.
At 11:20 am, gold futures for December delivery fell 0.71 percent to Rs 49,970 per 10 grams as against the previous close of Rs 50,325 and opening price of Rs 50,200 on the MCX. Silver futures traded 1.53 percent lower at Rs 61,589 per kg. The prices opened at Rs 62,091 as compared to the previous close of Rs 62,543 per kg.
“Hopes over a potential vaccine against the COVID-19 virus coupled with a stronger US Dollar might weigh on the yellow metal prices. As for today, traders can sell gold at Rs 50,300 levels with a stop loss of Rs 50,600 levels for the target of Rs 49,800 levels. They can sell Silver at Rs 62,300 level, with the stop loss of Rs 63,000 levels and for the target of Rs 61,000 level,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd.
International gold prices inched lower on Thursday, as a firmer dollar and progress in COVID-19 vaccine developments offset concerns over spiking virus cases in the United States and hopes of more stimulus, Reuters reported.
Spot gold fell 0.21 percent to $1,867.43 per ounce, while US gold futures were down 0.4 percent at $1,866.60.
Meanwhile, hedge funds and money managers decreased their bullish positions in COMEX gold and silver contracts in the week to November 10, the US Commodity Futures Trading Commission (CFTC) said.
After falling for five straight sessions, the dollar index was up 0.2 percent, making gold expensive for holders of other currencies.
“The trend in both precious metals seems weak. On MCX, gold prices below Rs 50,000 level can see support at Rs 49,550 while silver below Rs 62,000 can see support at Rs 59,500 level,” said Ajay Kedia, Director, Kedia Commodity Comtrade.
Support for MCXBULLDEX is placed at 15,413 and below the same, it could test 15,323 levels, and resistance is now likely to be seen at 15,600, a move above could see prices testing 15,697, Kedia added.
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