India Gold MCX February futures rallied nearly 1 percent on Monday tracking positive trends seen in the international spot prices as U.S. President Donald Trump had signed a long-awaited coronavirus relief aid bill.
Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a partial federal government, said a Reuters report.
On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.84 percent at Rs 50,493 per 10 gram at 0920 hours. March silver was trading 2.9 percent higher at Rs 69,501 per kilogram.
Experts are of the view that prices of precious metal could remain volatile this week. Investors should deploy buy on dips approach. The support for Gold is placed at Rs 49800 while for Silver it is placed at Rs 66,600.
Gold and silver traded steady last week but gold prices halted a three-week rally amid a rollercoaster of U.S. stimulus. Gold February futures contract settled at $1882.90 per troy ounce and Silver March futures contract settled at $25.94 per troy ounce.
Gold February futures contract settled at 50073 per 10 gram while Silver March futures contract were settled at 67509 per one kilogram. Gold and silver traded steady on Thursday on Christmas Eve.
President Trump unexpectedly vetoed a big U.S. defence spending bill on Wednesday and has held up a financial stimulus package for Americans that Congress had passed earlier, suggest media reports.
“We expect gold and silver prices to remain volatile this week amid a rollercoaster on the U.S. stimulus, new virus strain, and volatility in the dollar index. Gold has support at $1870-1855, while resistance at $1894-1908 per troy ounce. Silver has support at $25.60-25.30, while resistance is at $26.30–26.60 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, Gold has support at 49800-49660 and resistance is placed at 50330-50550 levels. Silver has support at 66600-65800 and resistance is placed at 68100-69000 levels. We suggest buying on the dip,” he said.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades about 1% higher near $1900/oz after a 0.3% gain on Friday. Gold has edged on a US stimulus deal as US President Donald Trump signed into law a $2.3 trillion pandemic aid and spending package(Source: Reuters).
Also supporting price is the weaker US dollar and increasing concerns about virus variant. However, weighing on price is vaccination progress and weaker investor interest.
Gold has retested the $1900/oz on stimulus announcement and may continue to trade with a positive bias.Disclaimer
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