Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday following gains in international spot prices amid an easing US dollar index.
At 11:25 am, gold futures for February delivery rose 0.18 percent to Rs 49,530 per 10 grams as against the previous close of Rs 49,443 and the opening price of Rs 49,510 on the MCX. Silver futures traded 0.42 percent higher at Rs 65,126 per kg. The prices opened at Rs 65,000 as compared to the previous close of Rs 64,853 per kg.
Experts are of the view that gold and silver can be bought on dips.
“Bullion outlook still remains firm for the day, there are key data today from US zone will support bullion. While in morning session some pullback towards Rs 49,350-49,400 will give us an opportunity to buy again (or on a break above Rs 49,650) for Rs 49,800 level today,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold prices inched higher to a one-week top on Wednesday as the metal built on the previous session’s gains on growing hopes for further US stimulus and ahead of a closely watched Federal Reserve policy decision, Reuters reported.
Spot gold was up 0.1 percent at $1,855.71 per ounce, after hitting its highest since December 9 at $1,857.89. US gold futures rose 0.3 percent to $1,860.30.
Investors now await the Federal Reserve’s final policy statement of the year, due today, where it is expected to keep interest rates pinned near zero and signal where rates are headed in the coming years.
“Weakness in dollar and expectation of stimulus package for US economy support the gold prices. Increasing cases of coronavirus also supports the gold as a safe haven asset,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
According to Gupta, as for today, traders can buy gold at Rs 49,400 levels with the stop loss of Rs 49,100 levels for the target of Rs 50,200 levels. Silver can be bought at Rs 65,000 levels, with the stop loss of Rs 64,300 levels and for the target of Rs 66,500 levels.
“We expect gold may test $1,880 to $1,900 levels soon,” he added.
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