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    Gold rate today: Yellow metal trades higher; likely to face resistance at Rs 51,900 per 10 grams

    Gold rate today: Yellow metal trades higher; likely to face resistance at Rs 51,900 per 10 grams

    Gold rate today: Yellow metal trades higher; likely to face resistance at Rs 51,900 per 10 grams
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    By Ankit Gohel   IST (Updated)

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    Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday tracking gains in the international spot prices as investors await US Federal Reserve's monetary policy decision later this week, analysts said.

    Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday tracking gains in the international spot prices as investors await US Federal Reserve's monetary policy decision later this week, analysts said.
    At 11:10 am, gold futures for October delivery rose 0.20 percent to Rs 51,421 per 10 grams as against the previous close of Rs 51,319 and opening price of Rs 51,599 on the MCX. Silver futures traded 0.24 percent higher at Rs 68,088 per kg. The prices opened at Rs 68,485 as compared to the previous close of Rs 67,928 per kg.
    “Gold prices look to trade in range while sentiments remain weak as investors maintained a cautious approach ahead of US Federal Reserve's monetary policy decision this week and as optimism around a potential COVID-19 vaccine lifted appetite for riskier assets,” said Ajay Kedia, director, Kedia Commodity Comtrade.
    International gold prices rose on Monday, supported by a weaker dollar and expectations that the US Federal Reserve will adopt a dovish stance at its two-day monetary policy meeting later this week, Reuters reported.
    Spot gold was up 0.4 percent at $1,949.92 per ounce, adding to the previous week's 0.2 percent gain. US gold futures climbed 0.6 percent to $1,958.60.
    In the past few weeks, gold consolidated in a broad range of $1,920 and $2,000 despite increased uncertainty between the US and China. Better-than-expected economic numbers from the US strengthened the dollar against its major crosses and kept gold gains in check.
    Market participants will keep an eye on the Fed policy statement and the expectation is that the central bank could keep a dovish outlook. Commentary from the Fed Chairman will be important to determine a trend for the yellow metal,” said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services Ltd
    Volatility for the greenback as well as gold is expected to remain low as no major economic data is expected to be released from the US. For today, Damani expects gold on MCX to quote in the range of Rs 51,100 and Rs 51,950. On COMEX the expected range is $1,900 and $1,960.
    Meanwhile, strength in the Indian rupee amid buying in the domestic equity markets kept a check on gold prices.
     
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