Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday after witnessing a rally in the previous session while silver prices rose.
At 11:15 am, gold futures for December delivery fell 0.38 percent to Rs 51,857 per 10 grams as against the previous close of Rs 52,055 and opening price of Rs 51,912 on the MCX. Silver futures traded 0.13 percent higher at Rs 64,335 per kg. The prices opened at Rs 64,479 as compared to the previous close of Rs 64,253 per kg.
Strength in the Indian rupee amid buying in the domestic equity market pressurized the yellow metal prices.
International gold fell on Friday after surging in the previous session, as the dollar gained, but was set for its best week since late July on hopes for more central bank economic support as investors bet on a divided US Congress under a Biden presidency, Reuters reported.
Spot gold fell 0.6 percent to $1,936.95 per ounce. Prices soared 2.4 percent on Thursday on a dollar slide, setting it up for a 3.1 percent gain for the week. US gold futures fell 0.4 percent to $1,939.00.
The dollar rose, making gold less attractive to other currency holders.
“The yellow metal is likely to see a bounce back in today’s session as the undertone for both the precious metals looks positive. The US Federal Reserve promised to keep interest rates low while the prevailing election uncertainty in the US will support gold prices,” said Jigar Trivedi, Research Analyst – Commodities Fundamental, Anand Rathi.
According to Trivedi, gold may find support at Rs 51,650-51,750 level while resistance is placed at Rs 52,000-52,200 levels. Support for silver is seen at Rs 63,800 level while resistance is palced at Rs 65,000-65,200 levels.
Investors will keep an eye on the US non-farm payrolls data later today.
Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said, “As for today traders can go for Buy in gold at Rs 51,700 levels with the stop loss of Rs 51,400 levels for the target of Rs 52,400 levels. They can also go for Buy in Silver at Rs 64,000 levels, with the stop loss of Rs 63,200 levels and for the target of Rs 65,300 levels.”
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