Gold prices in India traded sideways-to-higher on the Multi Commodity Exchange (MCX) Monday tracking a muted trend in the international spot price. Experts believe that the trend in the precious metal looks positive as far as it trades above Rs 49,000 level and investors can go for a buy-on-dips approach.
At 11:15 am, gold futures for February delivery rose 0.25 percent to Rs 49,296 per 10 grams as against the previous close of Rs 49,172 and the opening price of Rs 49,231 on the MCX. Silver futures traded 0.07 percent higher at Rs 63,856 per kg. The prices opened at Rs 63,643 as compared to the previous close of Rs 63,813 per kg.
“Gold price gained on safe-haven demand amid mounting coronavirus cases across the globe and a profound weakness in the dollar index. Uncertainty over COVID-19 vaccine and hopes of further stimulus infusion by central banks also supported the yellow metal prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold prices steadied on Monday as grim US jobs data bolstered hopes for more fiscal stimulus, although optimism around coronavirus vaccine rollouts kept gains in check, Reuters reported.
Spot gold prices were steady at $1,837.04 per ounce, while US gold futures were little changed at $1,840.80.
Talks aimed at reaching a fresh pandemic relief package gathered momentum on Friday, as a bipartisan group of US lawmakers worked to put the finishing touches on a new $908 billion bill.
“The trend in gold price looks positive above Rs 49,000 level. Hence, investors can buy gold on dips,” Kedia said.
According to Kedia, gold may face resistance at Rs 49,800 level while support is placed at 48,750 level. Support for silver is seen at Rs 62,500 level and resistance at Rs 65,000 level.
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