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Gold rate today: Yellow metal eases; support seen at Rs 49,100 level; analysts suggest sell-on-rally

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Gold prices in India traded marginally lower on the Multi Commodity Exchange (MCX) Thursday following a muted trend in the international spot prices amid uncertainties over US stimulus package and improved investor risk appetite on hopes of coronavirus vaccine, analysts said. At 11:35 am, gold futures for February delivery eased 0.17 percent to Rs 49,175 per 10 grams as against the previous close of Rs 49,260 and the opening price of Rs 49,165 on the MCX. Silver futures traded 0.20 percent lower at Rs 63,369 per kg. The prices opened at Rs 63,747 as compared to the previous close of Rs 63,499 per kg.

Gold rate today: Yellow metal eases; support seen at Rs 49,100 level; analysts suggest sell-on-rally
Gold prices in India traded marginally lower on the Multi Commodity Exchange (MCX) Thursday following a muted trend in the international spot prices amid uncertainties over US stimulus package and improved investor risk appetite on hopes of coronavirus vaccine, analysts said.
Gains in the US dollar index and record outflow from gold-backed ETF in November also pressurized the precious metals.
At 11:35 am, gold futures for February delivery eased 0.17 percent to Rs 49,175 per 10 grams as against the previous close of Rs 49,260 and the opening price of Rs 49,165 on the MCX. Silver futures traded 0.20 percent lower at Rs 63,369 per kg. The prices opened at Rs 63,747 as compared to the previous close of Rs 63,499 per kg.
“Gold was trading in a range after a sharp fall in the previous session. A rebound in US dollar, COVID-19 vaccine hopes and inability of US lawmakers to agree on a fiscal stimulus pressurized the yellow metal prices,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.
International gold prices were little changed on Thursday after a steep sell-off in the previous session as a breakthrough in long-running negotiations among U.S. lawmakers over a pandemic relief package remained elusive.
Spot gold was steady at $1,839.67 per ounce, after slipping as much as 2.5 percent on Wednesday. US gold futures rose 0.3 percent to $1,843.50.
Meanwhile, in November, gold-backed ETFs and similar products (gold ETFs) recorded their first net outflows in twelve months and second-largest monthly outflows ever.
Gold ETF holdings decreased by 107 tonnes during the month – $6.8 billion or 2.9 percent of assets under management (AUM) – as the gold price had its worst monthly move (-6.3 percent) since November 2016, when it dipped 7.4 percent, according to a World Gold Council report.
Gold is expected to remain rangebound for a while, Trivedi said while suggesting to sell gold on any bounce.
“On COMEX, $1,810-1,830 will act as key support levels while resistance will be between $1,855-1,875 range. On MCX, gold may find support at Rs 48,800 - 49,100 levels and may face resistance at Rs 49,400 - 49,600 levels,” Trivedi said.
For silver, support is seen at Rs 62,400-63,100 levels and resistance is placed at Rs 64,000-64,500 levels, he added.
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