Commodities

Gold rate today: Yellow metal rises above Rs 49,000 per 10 gms; may face resistance at Rs 49,800 level

Updated : December 03, 2020 10:40 AM IST

US gold futures were up 0.5 percent at $1,838.60.

Optimism over a stimulus deal and vaccine progress favoured riskier assets and pushed the US dollar to a near 2-1/2-year low.

Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Thursday following gains in international spot prices due to weak US dollar and renewed expectations of a stimulus package in the US.

At 10:00 am, gold futures for February delivery rose 0.56 percent to Rs 49,220 per 10 grams as against the previous close of Rs 48,947 and the opening price of Rs 49,147 on the MCX. Silver futures traded 0.57 percent higher at Rs 63,685 per kg. The prices opened at Rs 63,638 as compared to the previous close of Rs 63,325 per kg.

“Gold prices are witnessing a short-covering from technically oversold territory. Concerns over rising infection cases in the US, weakness in dollar and hopes of the stimulus package are all supportive of gold prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.

Federal Reserve Chair Jerome Powell and US Treasury Secretary Steven Mnuchin both backed more fiscal stimulus to bridge the economy through the next few months of the pandemic. In Senate testimony, Powell suggested that more fiscal stimulus would be needed in addition to the central bank's monetary support.

International gold rose to an over one-week high on Thursday as the dollar weakened on hopes of coronavirus vaccine roll-outs, while investors also weighed the possibility of more US stimulus, Reuters reported.

Spot gold rose 0.2 percent to $1,835.37 per ounce. US gold futures were up 0.5 percent at $1,838.60.

Optimism over a stimulus deal and vaccine progress favoured riskier assets and pushed the US dollar to a near 2-1/2-year low.

Analysts believe while optimism over an economic recovery might continue to push investors away from gold, the downside is likely to be limited as real yields were still negative and can fall further if hopes for a stimulus were lifted.

“On MCX, gold may face resistance at Rs 49,800 level while support is placed at Rs 48,600 level. For Silver, resistance is seen at Rs 65,200 level and support at Rs 62,400 level,” Kedia added.

(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.)

Gold rate today: Yellow metal rises above Rs 49,000 per 10 gms; may face resistance at Rs 49,800 level

You May Also Like

Axis Bank Q3 net profit drops 36% to Rs 1,117 crore

HUL Q3 results: Net profit rises 19% YoY to Rs 1,921 crore, misses estimates

Bank of Baroda Q3 net profit rises to Rs 1,061 crore; NII up 8.6%

Trending on CNBC-TV18

recommended for you