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Last Updated : Jan 08, 2020 09:37 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal hits fresh record high as Iran attacks US forces

On the MCX, gold contracts for February were trading higher by Rs 562, or 1.38 percent, at Rs 41,225 per 10 gram at 0920 hours. It hit a record high of 42,278 per 10 gm.

Representative Image
Representative Image

India Gold February futures hit a fresh record high on January 8 tracking gains in international spot prices which surged past $1,600 an ounce mark after Iran fired rockets at Iraqi airbase which hosts US forces that triggered risk-off sentiment.

Spot prices hit their highest since March 2013 at $1,610.90 earlier in the session. US gold futures rose 2 percent to $1,605.80.

“The jump in the price of what’s viewed by investors as a safer asset in times of political and economic uncertainty came after Iran’s missile attack on US-led forces in Iraq early on Wednesday,” said a Reuters report.

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“The attack came hours after the funeral of an Iranian commander whose killing in a US drone strike has raised fears of a wider conflict in the Middle-East,” it said.

On the MCX, gold contracts for February were trading higher by Rs 562, or 1.38 percent, at Rs 41,225 per 10 gram at 0920 hours. It hit a record high of 42,278 per 10 gm.

Experts are of the view that both Gold and Silver are likely to trade higher and dips should be used to buy, and investors should avoid going short at higher levels.

On Gold, 40,400 level is likely to act as major support while Silver could find support near 47,700 levels in the domestic market.

Track live Gold price here

Trading strategy

Expert: Manoj Kumar Jain, Director, IndiaNivesh Commodities

Buy on dips strategy still working in both the precious metals as tensions escalate in the Middle East.

Gold prices sustain above $1600 could extend rally towards $1630-1640 levels and Silver prices sustain above $18.50 could extend rally towards $19-19.20 levels in the international market.

Trend strongly bullish and recommend to buy on a dip in both the precious metals and avoid short sell.

Expert: Jateen Trivedi, Sr Research Analyst - Commodity & Currency, LKP Securities Ltd

On the daily chart, Gold traded positive on the back of brewing the US, and Iraq/Iran tensions, as retaliation from Iran early morning on Wednesday has got Gold to touch $1600 the highest since 2013 in dollar terms.

Prices overall are in a strong positive trend market bias. Prices can be in the bullish momentum till the time they are above 39500 on a closing basis. For the day 41,000-41,200 will act as resistance whereas 40,800-40,600 as supports.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February has given a good correction up to 40200 levels after testing

41000 levels. On the hourly chart, it has given a bounce from its 21-Hourly Moving Average which is placed at 40500 levels.

MCX Gold may continue upside to marginal sideways momentum so above 40500

levels upside momentum can be expected up to 41400 levels. International Gold could trade in $1575-$1610 levels.

Intraday strategy: MCX Gold February Buy in the range of 40900-41000 with 40750 as a stop loss and target of 41400 levels.

Disclaimer: The views and investment tips expressed by investment 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.

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First Published on Jan 8, 2020 09:37 am
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