The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)
India Gold MCX December Futures slipped in the red on November 18 tracking a muted trend seen in the international spot prices. Experts say precious metal will remain volatile amid weakness in the dollar index and rising coronavirus cases.
On the domestic front, Gold prices could get support around 50,500-50,300 levels while Silver has support at 62,600-62,100 levels, say experts.
On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.37 percent at Rs 50,579 per 10 gram at 0920 hours. December silver futures were trading 0.5 percent lower at Rs 62,900 per kg.
Gold and silver were settled on a slightly weaker note in the international markets on Tuesday. Gold December futures contracts were settled at $1885.10 per troy ounce while silver December futures contracts settled at $24.65 per troy ounce.
Both the precious metals were also settled on a weaker note in the domestic market.
“Despite weakness in the dollar index gold and silver prices are struggling amid rising hopes for covid-19 vaccine. Gold and silver prices are stuck up between vaccine hopes and rising coronavirus cases,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect both the precious metals remain volatile amid weakness in the dollar index and rising coronavirus cases could support prices but vaccine hopes will restrict gains. At mcx, gold is having support at 50500-50330 and resistance at 50920-51050,” he said.
Jain further added that Silver has support at 62600-62100 levels and the resistance is placed at 63800-65400 levels. “We expect both sides moves in the gold and silver in today's session,” he added.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices ended marginally in the red but held in a narrow range on Tuesday, as a weaker dollar and concerns about mounting coronavirus cases and their impact on the economy offset with optimism about the race to deliver a vaccine.
Domestic gold and silver ended weak on Tuesday tracking overseas prices. The upside was capped as the U.S. Dollar Index ended in the red.
Domestic bullion could trade flat this Wednesday morning, tracking a subdued start in the overseas prices. Technically, MCX Gold December is trading on a flat note where above 50800 will maintain positive momentum whereas it is likely to trade in a consolidation pattern. Support is at 50600-50400 levels and Resistance is at 50950-51150 levels.
MCX Silver December is trading near 63300 levels above the 21-Daily Moving Average indicating upside momentum to continue. However, the downside 62800-62100 will hold support & 64100-65700 will be resistance.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades mixed near $1880/oz amid lack of clear cues. Supporting price is worsening the virus situation and the loose monetary policy stance of major central banks.
However, weighing on price is vaccine progress, continuing strength in the equity market, uncertainty about the US fiscal stimulus deal, and mixed ETF flows. Gold may remain choppy however general bias may be on the upside amid the worsening virus situation.Disclaimer
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