Gold price today: Yellow metal gains strength, March silver rallies over 1%

Gold

Gold prices gained strengthened and silver too was up more than 1 percent in Indian markets in the morning trade on January 29. On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.25 percent at Rs 49,056 for 10 grams at 0920 hours. March silver was trading 1.3 percent higher at Rs 68,522 a kilogram.

Spot gold prices were steady as investors waited for developments around a US stimulus package, though the metal was on course to post a weekly and monthly decline hurt by a stronger dollar, said a Reuters report.

“Comex gold trades marginally higher above $1,840/oz after a 0.4 percent decline on Thursday. Gold is range-bound as support from rising virus cases, mixed economic data from major economies and US stimulus expectations are countered by continued ETF outflows and lack of any cues about fresh measures by major central banks,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities told Moneycontrol.

Gold may remain choppy, reflecting mixed trade in the dollar, however, rising virus cases and US stimulus expectations may lend some support, he said.

Domestic gold and silver ended mixed on January 28, tracking overseas prices, with gold ending lower and silver ending with gains.

“Gold ended lower, while silver rose on Thursday after some traders were also moving to cover short positions as rumours rippled through the market about a GameStop-style squeeze driven by retail investors,” Sriram Iyer, Senior Research Analyst at Reliance Securities told Moneycontrol.

“Technically, MCX April gold took a resistance near 49,600 levels from where it gave a breakdown and ended below 49,000 levels, indicating a bearish momentum up to 48,800-48,650 levels,” he said.

Iyer said MCX March silver was unable to sustain above 70,000 but still ended on a positive note above 67,000, indicating that a bullish momentum would continue up to 67,900-70,300 levels. Support is at 67,150-66,500 levels.