A day before Dhanteras 2020, Gold price trades marginally higher; could face resistance above Rs 51,000

India Gold MCX December Futures rose marginally on November 12 tracking a positive trend seen in the international spot prices. Experts are of the view that Gold could turn volatile and may face resistance above Rs 51,000 per 10 gm.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading higher by 0.27 percent at Rs 50,305 per 10 gram at 0920 hours. December silver futures were trading 0.16 percent higher at Rs 62,640 per kg.

Gold and silver prices retreated from the previous day's highs and slipped on Wednesday. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1861.60 per troy ounce while Silver December futures contract settled at $24.26 per troy ounce.

Despite weakness in the rupee both the precious metals also settled on a weaker note in the domestic markets. Gold December futures contracts settled at Rs 50169 per 10 gram while Silver December futures contracts were settled at Rs 62541 per one kilogram.

Gains in the dollar index, global equities, and US 10 years bond yield pushed both the precious metals lower, suggest experts. Global equities outperformed again after news of the COVID-19 vaccine along with global investors booking profits in the precious metals and moving to riskier assets again.

“We expect both the precious metals remain volatile and both side moves are expected in gold and silver ahead of US unemployment claims data, US Federal Reserve chairman and ECB President Speech later on Thursday,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold is having support at $1850-1834 per troy ounce and resistance at $1872-1884 per troy ounce. Silver is having support at $24-23.70 per troy ounce and resistance at $24.55-24.80 per troy ounce,” he said.

Jain is of the view that at MCX, Gold is having support at Rs 50000-49800 and resistance at Rs 51380-51550 levels. Silver is having support at Rs 61800-61200 and resistance at Rs 63100-63800 levels.

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Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver fell on Wednesday hurt by a stronger dollar and optimism around a potential COVID-19 vaccine. Domestic gold and silver fell Wednesday, tracking overseas prices. International gold and silver fell on Wednesday hurt by a stronger dollar and optimism around a potential COVID-19 vaccine. Domestic gold and silver fell Wednesday, tracking overseas prices.

Domestic bullion could trade flat this Thursday morning, tracking a subdued start in the overseas prices.

Technically, MCX Gold December yesterday took support near Rs 49900 levels where Rs 50500 will act as a strong hurdle, therefore, can see sideways to marginal downside momentum in the coming session. Support is at Rs 49900-49750 levels and Resistance is at Rs 50400-50600 levels.

MCX Silver December yesterday did not manage to sustain above Rs 63000 levels thus indicating downside momentum below it where Rs 61600- Rs 60400 will hold support & Rs 62900-63300 will be resistance.

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