Gold prices rose in domestic futures on October 24 ahead of the Dhanteras festival, which possesses a sentimental value as per India’s tradition in which buying Gold is considered auspicious for the health and wealth of the country.
In the international market, Gold held ground above $1,490 per ounce on Thursday as investors awaited clarity on Brexit after the European Union delayed a decision on granting an extension to Britain, said a Reuters report.
Experts feel that Gold is likely to hover in a range in the near term due to which there could be a possibility of a muted festival season.
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“We are just one week behind the celebration of Dhanteras and Gold is trading near its six-years high around Rs 38,000 and market veterans are expecting no plunge in the ongoing prices, which is making it a purchase only for higher section of the society,” Kaushlendra Singh Sengar, Founder, Advisorymandi.com told Moneycontrol.
Gold December futures climbed by Rs 22 to Rs 38,025 per 10 gram at 0920 hrs IST. It closed at Rs 38,003 on October 23.
Moderate gains were seen in Gold and Silver prices on Wednesday. Some safe-haven buying was seen in precious metals due to Brexit worries. But, strength in the dollar index and news on easing US sanctions on Turkey capped gains, suggest experts.
Spot Gold prices test resistance of$1,494 and silver prices also test $17.60 per troy ounce. MCX Gold prices which tested crucial resistance of 38,050 and made a high of 38,099 could face resistance nea4 38,100 levels, suggest experts.
“We expect Gold and Silver prices remain trade in the range. Gold is having support at 37,800 while resistance at 38,100. If it sustains above 38,100, the momentum could push it towards 38,300,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.
“Silver prices are having support at 45,000 and resistance at 45,500 only sustain above 45,500 could show further strength towards 45,800,” he said.