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    Gold rate today: Yellow metal eases; Buy on dips for target of Rs 49,000, say experts

    Gold rate today: Yellow metal eases; Buy on dips for target of Rs 49,000, say experts

    Gold rate today: Yellow metal eases; Buy on dips for target of Rs 49,000, say experts
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    By Ankit Gohel   IST (Published)

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    Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Wednesday following steady international spot prices as investors opted for profit booking at higher levels. However, sentiment for the yellow metal remains bullish as rising coronavirus cases globally supported investment demand, analysts said.

    Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Wednesday following steady international spot prices as investors opted for profit booking at higher levels. However, sentiment for the yellow metal remains bullish as rising coronavirus cases globally supported investment demand, analysts said.
    At 11:20 am, gold futures for August delivery fell 0.10 percent to Rs 48,753 per 10 grams as against the previous close of Rs 48,800 and opening price of Rs 48,704 on the MCX. Silver futures traded 0.07 percent lower at Rs 50,165 per kg. The prices opened at Rs 50,177 as compared to the previous close of Rs 50,202 per kg.
    “Gold prices were flat on the absence of any major macroeconomic data. The sentiment still remains positive amid rising safe-haven demand,” said Ajay Kedia, director, Kedia Commodity Comtrade.
    International gold steadied near a more than eight-year high on Wednesday, as worries over surging COVID-19 cases and hopes of more stimulus measures from the US Federal Reserve lifted demand for the safe-haven metal, Reuters reported.
    Spot gold was little changed at $1,792.79 per ounce by, after hitting its highest since November 2011 at $1,796.93 on Tuesday, just a few dollars away from the key $1,800 level. US gold futures eased 0.2 percent to $1,805.70.
    According to the World Gold Council report, the Gold-backed ETFs recorded their seventh consecutive month of positive flows, adding 104 ton in June, equivalent to $5.6 billion or 2.7 percent of assets under management, taking global holdings to new all-time highs of 3,621 ton.
    Weakness in global equity markets on fears of a second phase of lockdowns due to rising coronavirus infections supported the yellow metal prices, analysts said.
    Kedia suggests buying gold on any dips for a target of Rs 49,000 per 10 grams on MCX.
    “Support for gold is placed at Rs 48,400 while resistance is seen at Rs 49,200 level on MCX. Investors should buy gold on any dips as the sentiment seems positive,” Kedia said.
     
    (Disclaimer:
    The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)
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