Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Thursday following gains in international spot prices after the US Federal Reserve kept interest rates near zero and progress over a US fiscal stimulus. A weaker US dollar index also supported precious metal prices.
At 11:20 am, gold futures for February delivery rose 0.46 percent to Rs 49,825 per 10 grams as against the previous close of Rs 49,597 and opening price of Rs 49,720 on the MCX. Silver futures traded 1.39 percent higher at Rs 66,830 per kg. The prices opened at Rs 66,670 as compared to the previous close of Rs 65,911 per kg.
International Gold held firm near a one-week high on Thursday as progress on a US fiscal stimulus deal weighed on the dollar, while a pledge by the Federal Reserve to keep rates low until an economic recovery is secure lent further support.
Spot gold was little changed at $1,863.89 per ounce, having hit a one-week high of $1,867.19 earlier in the session. US gold futures rose 0.5 percent to $1,868.20.
“Gold prices sustained above $1,868 will see more positive upside to extend of $1,905.00 and if this week prices closed above the same then the target will $1,926.60. Therefore, we will continue to suggest the bullish trend for the upcoming period conditioned by the price stability above $1,850.00,” said Ajay Kedia, director, Kedia Commodity Comtrade.
Experts believe the gold prices on MCX may test Rs 50,000 per 10 grams level in the short term, hence, buy on dips strategy should be applied.
“Despite the vaccine euphoria, alarming increase in the COVID-19 cases around the globe and hopes over additional stimulus by US might levy some support for Gold,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.
On the MCX, Gupta expects gold prices to trade higher in today’s session.
“As for today traders can buy gold at Rs 49,500 levels with the stop loss of Rs 49,200 levels for the target of Rs 50,300 levels. They can also buy Silver at Rs 66,500 levels, with the stop loss of Rs 65,900 levels and for the target of Rs 67,500,” Gupta said.
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