Gold price today: Yellow metal rangebound; likely to face resistance near 49,000

India's August gold Futures traded in a range with a mild positive bias on July 10, tracking a muted trend in international spot prices.

International prices were set for a fifth straight weekly gain as the coronavirus pandemic showed no signs of abating, keeping the safe-haven metal above the key $1,800 level, a Reuters report said.

Spot gold was little changed at $1,801.69. The yellow metal is up more than 1.5 percent so far in the week, the note said.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.01 percent at Rs 48,880 per 10 gram at 0920 hours. July futures for silver were trading 0.25 percent higher at Rs 51,218 per kg.

Gold and silver rally halted on July 9 as both precious metals slipped around 0.50 percent in the international market. Gold settled at $1,803.80 per troy ounce and silver at $18.96 per troy ounce. The dollar index also rebounded from its lows and was a reason for selling in both the metals.

Experts say the spike in coronavirus infections across the world is likely to keep the interest alive in the yellow metal. It is likely to face resistance around Rs 49,050-49,300 levels while support is placed at Rs 48,330 per 10 gm.

“Unemployment in the US is still at very high levels and increasing coronavirus cases could support both the precious metals at lower levels. India gold has crucial support at $1,772 per troy ounce/INR 48,330 on a closing basis,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd, told Moneycontrol.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance securities

International bullion spot moved lower and consolidated on July 9 after hitting a fresh eight-year high on the previous day. The dollar rebounded on July 9 which generated some mild headwinds for gold prices.

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