India Gold October Futures rallied and is trading comfortably above Rs 50,000 per 10 gm on September 29 tracking the positive trend seen in the international spot prices.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.13 percent at Rs 50,199 per 10 gram at 0930 hours. December silver futures were trading 0.3 percent higher at Rs 60,592 per kg.
Experts are of the view that volatility is likely to remain. The yellow metal could face some resistance around Rs 50,330-50500 on the upside while crucial support is placed at Rs 49,800.
Gold and silver rebound from their lows amid weakness in the dollar index and hopes for further stimulus from the US Federal Reserve to support the economy on Monday.
The Dollar index slipped from a two-month peak and supported gold and silver again. Discussions between U.S. Democrats and Republicans on a second financial stimulus package for Americans are ongoing and analysts are hopeful the same will be through soon.
Gold & Silver Rates Yesterday
Gold and silver breached key resistance in Monday's session in the international markets. Gold gained 0.97 percent and settled at $1882.30 per troy ounce and silver also gained 2.74 percent and settled at $23.60 per troy ounce.
Gold December futures contract settled at 50138 per 10 gram and the silver December futures contract settled at 60396 per one kilogram in the previous trading session.
“At MCX, if gold prices sustain above 50100 per 10-gram levels, then it could test 50330-50500 levels again, while 49800 is likely to act as a major support for the gold,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, if silver prices sustain above 60,220, then the momentum could extend 60800-61500 levels, while Rs 59200 is likely to act as a major support for the silver. We expect both the precious metals remain volatile in today's session and both side moves are expected,” he said.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International bullion ended with gains on Monday tracking the weakness of the U.S. Dollar, however, rebound in the U.S. Equity markets capped gains. Markets also awaited the U.S. presidential debates this week as investors refrained themselves from taking large positions.
Domestic gold and silver recovered on Monday, tracking firm overseas prices. Domestic bullion could trade flat on Tuesday tracking the international prices.
On the Charts, MCX Gold October contract has bounced back from 49380 levels and gave a close above 50000 levels indicating some upside push up to 50200-50500 levels. Support holds at 49750-49500 levels.
MCX Silver December could continue to trade upside above 57000 levels where prices have closed with more than 2% gains above 60000 levels indicating some upside push up to 60900-63000 levels. Support is at 59800-58700 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades moderately higher near $1890/oz after a 0.9% gain yesterday. Gold has bounced back from $1850/oz level gaining support from a correction in the US dollar index and modest ETF inflows.
Gold has bounced back from key levels however it now needs to break past the $1906-1910/oz level to result in extended gains. While the US dollar is off the lows, a sharp decline may come only if there is fresh development on the US front.
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