Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Monday tracking a weak trend in the international spot prices as the rollout of coronavirus vaccine in various countries dampened safe-haven appeal, analysts said.
At 11:10 am, gold futures for February delivery fell 0.67 percent to Rs 48,993 per 10 grams as against the previous close of Rs 49,324 and the opening price of Rs 49,101 on the MCX. Silver futures traded 0.85 percent lower at Rs 63,191 per kg. The prices opened at Rs 63,482 as compared to the previous close of Rs 63,735 per kg.
The prices of precious metals remained rangebound last week on mixed cues amid uncertainty over US stimulus and recovery in the dollar index from their lows.
“Investors’ risk appetite was boosted on hopes of improvement in the global economic outlook as distribution of the COVID-19 vaccine commenced in a few nations. However, the yellow metal prices found support as an alarming increase in the pandemic cases around the globe and mounting tension between US and China,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
International gold prices eased on Monday as the rollout of a COVID-19 vaccine lifted riskier assets, overshadowing expectations of more US fiscal and monetary stimulus, a Reuters report said.
Spot gold fell 0.2 percent to $1,836.08 per ounce, while US gold futures eased 0.2 percent to $1,839.90.
Gold, considered a hedge against inflation and currency debasement, has gained 21 percent so far this year on the back of near-zero interest rates and unprecedented global stimulus.
According to Gupta, Pfizer and Biotech’s vaccine getting approved by the US regulator is expected to dent the appeal for the safe haven, Gold.
“As for today, traders can sell gold at Rs 49,300 levels with the stop loss of Rs 49,800 levels for the target of Rs 48,700 levels. They can also sell Silver at Rs 63,800 levels, with the stop loss of Rs 64,300 levels for the target of Rs 62,500 levels,” Gupta said.
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