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Gold price today: Yellow metal trades above Rs 52,000; Silver rose more than 1%

Experts are of the view that any dips in the prices will be an opportunity for buying again, but there could be some resistance around Rs 52550-52800 levels.

November 09, 2020 / 10:05 AM IST

India Gold MCX December Futures trades comfortably over Rs 52,000 per 10 gm on Monday tracking positive trend seen in the international Gold prices, supported by a weaker dollar and hopes of more stimulus measures under the U.S. President-elect Joe Biden.

The dollar index was hovering near a more than two-month low, said a Reuters report. Gold tends to benefit from widespread stimulus as it is considered a hedge against inflation, added the report.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading higher by 0.16 percent at Rs 52,252 per 10 gram at 0920 hours. December silver futures were trading 1.02 percent higher at Rs 66,000 per kg.

Experts are of the view that any dips in the prices will be an opportunity for buying again, but there could be some resistance around Rs 52550-52800 levels.

Gold and silver showed solid strength last week and settled on a positive note in the international markets. Gold December futures contract settled with a weekly gain of nearly 4 percent at $1952.05 per troy ounce and Silver December futures contract settled with a weekly gain of over 8 percent at $25.71 per troy ounce.

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Gold & Silver Rates Yesterday

Tuesday, 19th October, 2021

Gold Rate in Mumbai Yesterday

  • 10g of 24K gold in Mumbai
    47,750
  • 10g of 22K gold in Mumbai
    45,480

Tuesday, 19th October, 2021

Silver Rate in Mumbai Yesterday

  • 10g silver in Mumbai
    678
  • 1kg silver in Mumbai
    67,800
Show

Despite strength in the rupee, both the precious metals were also settled on a positive note in the domestic market. Gold December futures contract settled at 52,167 per 10 gram and Silver December futures contract settled at 65,335 per one kilogram.

The dollar index tumbled after democrat candidate Joe Biden's lead in the US Presidential elections. The dollar index slipped below 92.50 marks and settled with a weekly loss of nearly 2 percent and closed at 92.297 on Friday.

“Joe Biden's win in the US Presidential elections rekindled stimulus hopes in the United States and supported precious metals prices. Biden is likely to get as many as 306 electoral college votes in the US Presidential election, versus the minimum 270 needed for a win, after all, votes are tallied across the 50 US states,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“We expect gold and silver prices remain volatile this week and trade with positive bias. Gold is expected to test $1980 per troy ounce /INR 53000 levels again and silver could test $26.50 per troy ounce /INR 66500 levels again. Any dips in the prices will be an opportunity for buying again,” he said.

Jain is of the view that at MCX, gold has support at 51800-51660 and resistance at 52550-52800 levels. Silver has support at 64800-64000 and resistance at 65800-66500 levels.

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Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades about 0.3% higher near $1956/oz after a 0.3% gain in the previous session. Gold trades firm amid weakness in the US dollar, central bank measures to boost economic recovery and pick up in investor interest as is evident from ETF inflows.

However, weighing on price is an upbeat US jobs report and stable equity markets. Gold has regained upward momentum and may benefit from a weaker US dollar.

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver ended higher on Friday as the dollar weakened and increasing chances of a Joe Biden victory in the U.S. presidential election boosted hopes for a larger coronavirus relief bill.

Upside was capped after data earlier showed U.S. nonfarm payrolls increased by 638,000 jobs last month, while the unemployment rate fell to 6.9% from 7.9% in September.

Domestic bullion could trade firm this Monday morning, tracking a firm start in the overseas prices. Technically, MCX Gold December has given a breakout of its Rising Channel formation with good volume activity.

However, it holds a resistance near 52550-52780 levels. Support at 52070-51850 levels. MCX Silver December surge has given a breakout of horizontal trend line above 64070 levels indicating a positive trend to continue up to 65540-66300 levels. Support is at 65000-63800 levels.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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