Gold price today: Yellow metal holds above Rs 50,100, Silver up nearly 1%

India Gold February futures trade above Rs 50,100 per 10 gm on December 30 tracking a positive trend seen in the international spot prices. Tracking the momentum, Silver March futures rose nearly 1 percent in trade.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.22 percent at Rs 50,151 for 10 gram at 0920 hours. March silver was trading 0.97 percent higher at Rs 68,756 a kilogram.

Experts are of the view that investors could use the dip to buy into precious metals. Gold has support near Rs 49,550 while Silver has support around Rs 67,500.

Gold and silver settled on a mixed note on Tuesday. Gold February futures contract were settled at $1882.90 per troy ounce and Silver March futures contract were settled on a weaker note at $26.22 per troy ounce.

Domestic markets were also settled on a mixed note. Gold February futures contract were settled at 50039 per 10 gram, and silver March futures contract were settled at 68097 per one kilogram.

Gold is showing a steady move as it held on to $1880 levels on Tuesday amid weakness in the dollar index as COVID-19 cases are surging again in the United States.

“At present, traders and investors prefer to focus on the major rollout of a Covid vaccine that is likely to tamp down the virus by summertime. Fresh stimulus talks in the United States and weakness in the dollar index continue to support precious metal prices,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“We expect gold prices could test $1900 per troy ounce levels again in Wednesday’s session. Gold has support at $1870-1855 per troy ounce and resistance at $1896-1910 per troy ounce. Silver is having support at $25.88-25.50 per troy ounce and resistance at $26.55-26.80 per troy ounce,” he said.

Jain further added that at MCX, Gold has support at 49800-49550 and resistance is placed at 50330-50580 levels. Silver has support at 67500-66800 and resistance is placed at 68800-69500 levels.

“We suggest buying in the gold around 49800 with the stop loss of 49550 for the target of 49400 and buying in the silver around 67500 with the stop loss of 66600 for the target of 69500 levels,” added Jain.

Trading strategy

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher near $1887/oz after a 0.1% gain yesterday. Gold continues to trade in a range as support from a weaker US dollar, US stimulus measures and an increase in virus cases is countered by vaccination progress and lack of significant ETF buying.

Gold may remain directionless amid lack of fresh triggers however US stimulus and rising virus cases may continue to support prices.

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