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Gold price today: Yellow metal slips, crucial support at Rs 50,750-50,600

Trump on Tuesday said a coronavirus economic relief deal would likely come after the November 3 election.

October 28, 2020 / 11:43 AM IST

Gold prices slipped in early trade in the domestic futures market on October 28 tracking trends of the international markets.

Gold prices eased in international markets after the dollar gained some strength against its peers as the hopes of US stimulus weakened after the US President said a deal is possible after the November election.

Trump on Tuesday said a coronavirus economic relief deal would likely come after the November 3 election, with the White House unable to bridge differences with fellow Republicans in the US Senate as well as congressional Democrats.

However, concerns over rising cases of coronavirus and lacklustre equity markets saved gold from witnessing a strong selloff.

In the US and Europe, coronavirus cases have been rapidly rising and reports suggest that France is prepared for a fresh lockdown as new daily confirmed coronavirus cases hit the highest ever.

Close

Markets will look ahead to a televised address on Wednesday evening by French President Emmanuel Macron as authorities explore fresh restrictions to curb the spread of the coronavirus.

At 0940 hours, MCX December gold contracts were trading lower by 0.10 percent at Rs 50,909 per 10 gram. December silver futures were trading 0.45 percent lower at Rs 62,000 per kg.

Track live gold price here

Trading strategies

Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart

We expect both the precious metals to remain volatile ahead of the US Presidential elections, volatility in the dollar index and the second wave of coronavirus in the US and EU.

Gold is having support at $1,900-1,892 per troy ounce and resistance at $1,920-1,933 per troy ounce and silver is having support at $24.24-24 per troy ounce and resistance at $24.80-25 per troy ounce.

At MCX, gold is having support at Rs 50,750-50,600 and resistance at Rs 51,100-51,250. Silver is having support at Rs 61,600-61,000 and resistance at Rs 63,000-63,500 levels.

We expect both sides movement in the precious metals in today's session.

Sriram Iyer, Senior Research Analyst at Reliance securities

LBMA GOLD Spot has bounced back from $1,900 levels and made a high near $1,911 levels indicating upside momentum up to $1,918-$1,922 levels. Support holds at $1,897-$1,890 levels.

LBMA Silver Spot has bounced back from its multiple support zone near $24 where it has formed a Bullish Candlestick where upside could see $24.88-$25.43 levels. Support holds at $24-$23.78 levels.

MCX Gold December has sustained above Rs 50,700 levels where it holds strong support indicating a sideways to marginal upside momentum. It could trade in a range of Rs 50,700-51,150 levels.

MCX Silver December ended on a positive note where prices have bounced back from Rs 61,500 levels indicating upside momentum up to Rs 62,500-63,100 levels. Support holds at Rs 61,600-60,900 levels.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

Weighing on gold is uncertainty about US stimulus and recovery in the US dollar index from recent lows.

However, supporting price is ETF inflows, rise in Chinese imports, and safe-haven buying amid rising virus cases and mixed economic data from major economies.

Gold may remain choppy as equities and the US dollar are likely to trade mixed ahead of US elections however general bias may be on the upside on the back of safe-haven buying amid rising virus cases and uneven recovery.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking

As for today, traders can buy gold at Rs 50,700 with the stop loss of Rs 50,500 for the target of Rs 51,300.

They can buy silver at Rs 61,700, with the stop loss of Rs 61,200 for the target of Rs 62,700.

SMC Global Securities

Bullion counter may post selling where gold may test Rs 50,400, facing resistance near Rs 51,200 while silver may trade with higher volatility where it may test Rs 61,700, facing resistance near Rs 62,860.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Nishant Kumar
first published: Oct 28, 2020 10:06 am

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