Commodities

Gold rate today: Yellow metal trades higher; may face resistance at Rs 50,700 per 10 gms level

Updated : November 20, 2020 11:29 AM IST

Weakness in US dollar and short-covering due to weekend may push bullion prices higher for today, analysts said.

Gold prices have strong support at the $1,850 level.

Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday on concerns over rising coronavirus infection cases amid a muted trend in the international spot prices. Silver price also rose above Rs 62,000 level.

At 11:20 am, gold futures for December delivery rose 0.34 percent to Rs 50,160 per 10 grams as against the previous close of Rs 49,992 and the opening price of Rs 50,041 on the MCX. Silver futures traded 0.79 percent higher at Rs 61,995 per kg. The prices opened at Rs 61,610 as compared to the previous close of Rs 61,510 per kg.

“Concerns over the second wave of coronavirus infections and new lockdown in several countries is supporting gold prices. Further, weakness in US dollar and short-covering due to weekend may push bullion prices higher for today,” said Ajay Kedia, director, Kedia Commodity Comtrade.

Meanwhile, international gold prices fell on Friday after US Treasury Secretary Steven Mnuchin called for an end to some of the Federal Reserve's pandemic lending, sparking uncertainty about stimulus programs that have played a key role in reassuring financial markets, Reuters reported.

Spot gold slipped 0.2 percent to $1,864.54 per ounce and was headed for the second week of decline. US gold futures were up 0.1 percent at $1,863.80.

Gold prices have strong support at the $1,850 level, Kedia added.

“The trend in bullion looks firm for today so avoid any short. Gold may face resistance at Rs 50,700 level while support is placed at Rs 49,800 level. Resistance for silver is seen at Rs 63,400 and support is placed at Rs 61,000 level,” Kedia said.

(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 trades higher; may face resistance at Rs 50,700 per 10 gms level

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