Gold prices in India traded above Rs 50,000 per 10 grams level on the Multi Commodity Exchange (MCX) Tuesday tracking a positive trend in the international spot prices.
At 11:00 am, gold futures for December delivery rose 0.27 percent to Rs 50,082 per 10 grams as against the previous close of Rs 49,946 and the opening price of Rs 50,065 on the MCX. Silver futures traded 0.36 percent lower at Rs 65,264 per kg. The prices opened at Rs 65,388 as compared to the previous close of Rs 65,499 per kg.
“Gold prices are likely to trade with a positive bias amid a weak US dollar. Hopes of a stimulus package in the US and lower interest rates are supporting the yellow metal. Hence, any dips should be used as buying opportunity,” said Amit Sajeja, VP Research - Commodities & Currencies, Motilal Oswal.
International gold prices hit a two-week high on Tuesday, as investors remained hopeful of further US stimulus measures to counter the economic fallout of a surge in coronavirus cases, Reuters reported.
Spot gold rose 0.2 percent to $1,867.66 per ounce. It rose to $1,869.06, its highest since November 23, earlier in the session. US gold futures were up 0.3 percent at $1,871.70.
Meanwhile, a surge in coronavirus cases globally has forced a series of renewed lockdowns, including strict measures in California, US along with Germany and South Korea, lifting safe-haven demand for the precious metal.
“On MCX, gold may face resistance at Rs 50,300 level and support is placed at Rs 49,700 level. Resistance for silver is seen at Rs 66,800 level and support is placed at Rs 64,500 level,” Sajeja added.
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