Gold price today: Yellow metal sustains above Rs 51,000 tracking positive cues

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 August Futures rose over 1 percent on July 27 tracking international Gold that hit a fresh record high as consulate closures in China and the United States rattled investors, boosting the allure of safe-haven assets.

Gold rose 1 percent to a record high above $1,920 per ounce, surpassing a peak touched in September 2011, as Sino-U.S. tensions boosted the allure of safe-haven assets, especially those not tied to any specific country, said a Reuters report.

On the Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 1.4 percent at Rs 51,782 per 10 gram at 0920 hours. September futures for silver were trading 0.05 percent higher at Rs 61,223 per kg.

Gold and silver prices hit record highs last week in international markets amid a flood of stimulus from developed economies. Gold prices crossed $1900 per troy ounce on Friday, the first time since 2011.

India Gold gained more than 5 percent last week and settled at 51035 and it gained the seventh week in a row. Silver is also following gold and crossed $23 per troy ounce on Friday and reached seven years high.

“We expect both the precious metals remain firm and expected to test fresh highs in the coming days. Gold prices sustained above $1900 per troy ounce could extend the gains towards $1914-1925 per troy ounce, $1872 act as a major support on a closing basis,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“At MCX, Gold prices sustained above 51100 could extend the gains towards 51,330-51500 levels; 50800 act as a major support on a closing basis. Silver prices sustained above $23 per troy ounce could extend the gains towards $23.20-23.55 per troy ounce, $22.66 act as a major support on a closing basis,” he said.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold surged higher on Friday and technically broke above the $1900/ounce mark as a worsening U.S.-China row added to fears over the hit to a global economy already reeling from the coronavirus pandemic.

Silver has a stellar week gaining by 17% supported by a recovery in industrial activity and safe-haven appeal.

Technically, the MCX Gold October contract had a volatile session in the range of 50900-51425 levels where it is trading at an all-time high level.

Moreover, it ended above 51200 levels indicating volatility to continue in the coming sessions. Resistance holds at 51500-51700 level and Support is at 50985-50600 levels.

MCX Silver September made a high of 61828 levels where it has bounced back from 60510 levels however it ended on a flat note forming a Doji Candlestick pattern which could be a sign of Bearish Reversal, therefore, indicating some exhaustion at higher levels.

Prices are likely to trade on high volatility where it could trade in a range of 60200-61900 levels in the coming session.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades near $1935/oz which is an all-time high. Supporting gold price is weaker US dollar, increasing virus cases, strong ETF inflows, US-China tensions, and hopes of additional stimulus measures.

Gold has breached the pivotal $1900/oz level and we may see extended gains unless there is a sharp rebound in the US dollar.

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

Today, again we saw that gold has touched the life time high at Rs 51,833 levels and in international market it touched the life time high to $1944.50 per ounce levels. Silver also touched the 8 years high of Rs 64,849 levels.

Geopolitical tension between US & China and weakness in dollar supports the bullions. Dollar is weaking against all major currencies at 93.80 levels. US Bonds yields is also low which supports safe heaven demand for bullions.

We expect this rally in bullion will continue and gold and silver will move further upside. Gold may test Rs 52500 levels and silver Rs. 66000 levels soon.

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