Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday amid a momentum in international spot prices on a softer dollar. Silver prices eased.
At 10:10 am, gold futures for February delivery rose 0.04 percent to Rs 50,032 per 10 grams as against the previous close of Rs 50,013 and opening price of Rs 50,051 on the MCX. Silver futures traded 0.22 percent lower at Rs 68,669 per kg. The prices opened at Rs 68,555 as compared to the previous close of Rs 68,817 per kg.
“Gold prices saw a decent gap-up opening in the previous session on the back of US stimulus package and a weak dollar. The trading volume is expected to remain muted in gold. Fresh lockdown concerns in some parts of US may support gold prices. Going ahead, gold is likely to trade sideways-to-positive,” said Ajay Kedia, director, Kedia Commodity Comtrade.
Experts are of the view that sentiment for gold remains mixed as US stimulus deal and rising coronavirus concerns supported gold prices while improving investor risk appetite and progress on COVID-19 vaccination may limit gains.
International gold inched higher on Tuesday as a softer dollar underpinned the metal, with market participants looking forward to a US Senate vote on increased pandemic aid, a Reuters report said.
Spot gold rose 0.4 percent to $1,877.96 per ounce, after closing slightly lower in the previous session. The metal had climbed as much 1.3 percent on Monday after the passage of a near $900 billion US stimulus package. US gold futures fell 0.1 percent to $1,879.40.
Against a basket of currencies, the dollar fell 0.2 percent, bolstering gold's appeal to other currency holders.
“On MCX, support for gold is seen at Rs 49,780 level while it may face resistance at Rs 50,550 level. Silver may find support at Rs 67,200 level and resistance at Rs 70,000 level,” Kedia said.
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First Published: IST