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Gold price today: Yellow metal gains marginally, support placed at Rs 50,000 per 10 gm

Gold is having key support in the range of $1900-1910 per troy ounce and resistance at $1972-1984 per troy ounce. At MCX, gold is having support in the range of 50000-49800 levels and resistance at 51100-51330.

September 07, 2020 / 09:55 AM IST

India Gold October futures rose marginally on September 7 tracking the positive trend seen in the international spot prices on a weak dollar.

The dollar index was off from a one-week high hit in the previous session. A weaker greenback makes gold less expensive for holders of other currencies, said a Reuters report.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.22 percent at Rs 50,791 per 10 gram at 0920 hours. September silver futures were trading over 1 percent higher at Rs 68,070 per kg.

Last week Gold and silver prices showed extreme volatility but held on to its crucial support levels at the Comex division. Gold and silver slipped again amid a rebound in manufacturing activities in China, the European Union, and United States.

The US Dollar index also rebound from its two-and-half years' lows and pushed both the precious metals lower. However, sell-off in global equities, geo-political tensions, and fear of a second wave of coronavirus in Europe and other countries supports precious metals at lower levels, suggest experts.

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Gold slipped 1.73 percent and settled at $1940.80 per troy ounce and silver also slipped 1.88 percent and settled at $27.09 per troy ounce at Comex division last week.

“Major global economic data released last week showed improvement in manufacturing and employment after a pandemic but still data is far away from pre-COVID levels. Unemployment is still at very high levels, inflations are rising and fear of the second wave of coronavirus is a concern for the faster revival of global economies,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“We expect both the precious metals remain volatile this week and expected to hold key support levels. Gold is having key support in the range of $1900-1910 per troy ounce and resistance at $1972-1984 per troy ounce. At MCX, gold is having support in the range of 50000-49800 levels and resistance at 51100-51330,” he said.

Jain further added that Silver has support at $26.50-26.20 per troy ounce and resistance at 27.80-28.20 per troy ounce. At MCX, silver has support near 65000-64500 and resistance at 69100-69500 levels.

Track live gold price here

https://www.moneycontrol.com/commodity/gold-price.html

Trading Strategy

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver ended flat to lower on Friday tracking gains in the U.S. Dollar. However, a report showed the U.S. job growth slowed further in August as financial assistance from the government ran out.

International gold and silver have started higher this Monday morning in Asian trade. U.S. Markets are shut today for a labour market holiday, so volumes could be lower.

Retail demand for physical gold picked up slightly in India last week on a dip in domestic prices and the start of the festival season.

Domestic bullion could start flat to higher this Monday morning, tracking a positive start in the overseas prices.

Technically, MCX Gold October has given a close below the 50-Daily Moving Average which is placed at 50900 levels indicating a negative trend to continue. Support holds at 50260-49800 levels and Resistance is at 50900-51100.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades 0.5% higher near $1944/oz after a 0.2% decline in the previous session. Gold edged up amid choppiness in the US dollar index, correction in the US equity market, rising virus cases, and increased US-China tensions. Weaker investor and consumer buying has however kept a check on the upside.

Gold may witness choppy trade as the US dollar and US equity market struggle for direction however buying might emerge at lower levels amid persisting challenges to the global economy.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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