Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Wednesday following a weak trend in the international spot prices as positive developments over coronavirus vaccine dented safe-haven its appeal, analysts said.
At 10:35 am, gold futures for February delivery fell 0.73 percent to Rs 49,745 per 10 grams as against the previous close of Rs 50,109 and the opening price of Rs 49,850 on the MCX. Silver futures traded 1.10 percent lower at Rs 64,477 per kg. The prices opened at Rs 64,521 as compared to the previous close of Rs 65,192 per kg.
“Gold prices are unable to sustain above Rs 50,000 level. Encouraging COVID-19 vaccine news and a technical pullback is dragging the precious metal prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold prices eased on Wednesday as encouraging vaccine developments pushed investors towards riskier equities, although hopes for more US stimulus kept bullion near two-week highs hit in the previous session.
Spot gold fell 0.3 percent to $1,865.46 per ounce, after hitting its highest since November 23 at $1875.07 on Tuesday, while US gold futures eased 0.3 percent to $1,870.20.
However, Kedia believes weakness in the US dollar, expectations of stimulus package for the US economy and increasing COVID-19 infection cases will support the gold prices in the medium-to-long term.
“On MCX, support for gold is placed at Rs 49,350 level while resistance is seen at Rs 50,250 level. Silver may find support at Rs 63,500 level and resistance at Rs 65,800 level,” Kedia said.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking believes that hopes over further stimulus infusion by central banks may levy support to the safe-haven asset, Gold.
“As for today traders can buy gold at Rs 49,700 levels with the stop loss of Rs 49,400 levels for the target of 50,300 levels. They can also buy silver at Rs 64,100 levels, with the stop loss of Rs 63,500 levels and for the target of Rs 65,500 levels,” Gupta said.
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