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Last Updated : Jan 21, 2020 01:05 PM IST | Source: Moneycontrol.com

Gold price today: Yellow metal jumps higher, 39,750 level to act as a strong support

Gold prices are gaining support from weakness in the equities and Indian currency. Besides, rising tension in West Asia and elevated crude oil prices have boosted the demand for gold as a safe-haven metal.


Gold prices jumped in the futures trade on January 21, supported by positive global cues as the yellow metal rose to a near two-week high in international markets.

Gold prices are gaining support from weakness in the equities and Indian currency. Besides, rising tension in West Asia and elevated crude oil prices have boosted the demand for gold as a safe-haven metal.

Nifty slipped below 12,200, while Sensex fell 200 points in early deals. The rupee opened at 71.18 per dollar on January 21, lower by 8 paise against the previous day's close of 71.10 on some buying of the greenback by banks and importers.

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Around 09:25 hours IST, the MCX Gold traded with a gain of Rs 211, or 0.53 percent, at Rs 40,158 per 10 gram.

Gold and silver traded almost flat on January 20 due to holidays in the US. Spot gold in the international market closed around $1,560 and silver closed around $18 per troy ounce.

Fresh tensions in the Middle East and correction in the equity market supported the prices of both precious metals.

Track live Gold price here

Trading Strategy:

Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities

We expect prices of gold and silver will hold key support of $1,550 and $17.80 per troy ounce in the international market.

At the MCX, gold is expected to hold Rs 39,600 and silver is expected to hold Rs 46,400 level.

Gold can be bought around Rs 39,750 with a stop loss below Rs 39,600 for the target of Rs 40,050. Silver can be bought around Rs 46,600 with a stop loss of Rs 46,400 for the target of Rs 47,000.

Reliance Securities

MCX Gold February is sustaining well above Rs 39,900 level which suggests a good strength for upside momentum up to Rs 40,150.

On an hourly chart, gold has sustained above 21 as well as 50-hourly moving average and is trading in rising channel formation where Rs 39,750 will act as a strong support to the counter.

International gold has sustained above $1,555 which will hold as support. The overall near-term bias will be bullish with $1,580 as resistance on upside.

Intraday strategy: MCX Gold February should be bought in the range of Rs 40,050-40,000 with Rs 39,900 as the stop loss and the target of Rs 40,260.

Hareesh V, Head - Commodity Research, Geojit Financial Services

Renewed tensions in the West Asia and the outbreak of new deadly coronavirus in China are likely to support gold for being a safe-haven asset. At the same time, increased global economic optimism after the phase one trade deal and positive global economic releases are likely to dent major gains in the counter.

On the technical side, while prices stay above $1,555, we can expect upticks to continue for the day with major resistance at $1,584. However, a direct drop below $1,544 could negate our intraday outlook.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that 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 21, 2020 10:23 am
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