Gold prices in India traded a little higher on the Multi Commodity Exchange (MCX) Friday tracking a positive momentum in the international spot prices while silver prices declined.
At 11:00 am, gold futures for February delivery rose 0.11 percent to Rs 49,131 per 10 grams as against the previous close of Rs 49,077 and the opening price of Rs 49,150 on the MCX. Silver futures traded 0.15 percent lower at Rs 63,433 per kg. The prices opened at Rs 63,459 as compared to the previous close of Rs 63,530 per kg.
“Gold prices are stable amid mixed cues. The price is not sustaining at higher levels on developments over the COVID-19 vaccine. However, weak dollar index and stimulus measures in the US and Europe continue to support gold,” said Ajay Kedia, director, Kedia Commodity Comtrade.
In the previous session, the prices of precious metal recovered on the back of downbeat US unemployment data and corrections in the dollar index.
International gold edged higher on Friday as the dollar hovered near a two-and-a-half-year low, helping offset concerns over delays in a US pandemic rescue package, a Reuters report said.
Spot gold rose 0.1 percent to $1,836.27 per ounce. US gold futures gained 0.2 percent to $1,840.30.
“Support for gold is seen at $1,837 while resistance is placed at $1,856 level,” Kedia added.
Meanwhile, the European Central Bank rolled out more stimulus measures on Thursday to lift the currency bloc's economy out of a double-dip recession.
“The fundamentals for gold are supportive. Hence, a buy-on-dips strategy can be applied. On MCX, gold may face resistance at Rs 49,700 level while support is seen at Rs 48,800 level. Silver may find support at Rs 62,700 level and resistance at Rs 64,800,” Kedia said.
For next week, Kedia believes that if gold prices hold above the $1,820 level, it may test the $1,880 level and Rs 50,500 on MCX.
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