Experts are of the view that investors can look to buy the yellow metal on dips for a target of Rs 50800-51000 per 10 gm.
India Gold December Futures trades flat with a negative bias on Friday following a muted trend seen in the international spot prices. Experts are of the view that investors can look to buy the yellow metal on dips for a target of Rs 50800-51000 per 10 gm.
On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.05 percent at Rs 50,689 per 10 gram at 0920 hours. December silver futures were trading 0.14 percent higher at Rs 61,619 per kg.
Both the precious metals showed extreme volatility on Thursday. Gold and silver prices slipped in early trading sessions amid strength in the dollar index due to a rise in coronavirus cases in the United States.
Investors turned cautious after rapidly rising coronavirus cases in the United States and put safe-haven bets in the dollar again, suggest experts. The dollar index gained around 0.50 percent and pushed global equities and commodities lower.
Gold settled with minor gains at $1908.90 per troy ounce and silver settled with a loss of 0.70 percent at $24.22 per troy ounce. Gold settled higher at 50712 per 10 gram while Silver settled at $61535 per one kilogram.
“Weakness in the rupee also supports precious metals in the domestic markets. We expect both the precious metals remain volatile but continue to hold key support levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“Any decline in the prices will be an opportunity to buy in both the precious metals at lower levels. Gold can be bought around the 50300-50200 range with a stop loss of 50050 for the target of 50800-51000,” he said.
Jain further added that Silver can also be bought on decline around the 60300-60000 range with a stop loss placed at 59500, and a target of 61800-62500 levels.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International bullion prices rebounded on Thursday after President Donald Trump said he is willing to raise his offer of $1.8 trillion for a COVID-19 relief deal with Democrats in the U.S. Congress.
However, upside remained capped after the idea was shot down by his fellow Republican, Senate Majority Leader Mitch McConnell. The upside was capped as the investors continued to have faith in the U.S Dollar.
Domestic bullion could trade flat to marginally higher this Friday morning, tracking a positive start in the overseas prices.
Technically, MCX Gold December has recovered its early losses where it holds a strong support of 50280 levels. It ended on a positive note near a resistance zone of 50700-50750 above which will continue its upside move or else could see some sideways momentum below that level.
MCX Silver December bounced back from multiple support zones at 59800 levels where it closed above 61000 levels indicating sideways to marginal upside move to continue, where immediate support is at 60700-59300 levels. Resistance is at 62300-63000 levels.Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades little changed near $1911/oz after 0.1% gain yesterday. Gold is range-bound amid persisting uncertainty about US stimulus. ETF outflows show weaker investor interest however rising virus cases and disappointing US economic data have increased gold’s safe-haven appeal.
Gold may continue in the $1880-1930/oz unless there is more clarity on US stimulus but general bias may be on the upside on increasing challenges to the global economy.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.