Gold and silver prices struggled today in the Indian markets. December Gold Futures on MCX fell 0.06% to ₹50.305 for 10 grams. Silver futures rose 0.25% to ₹60,055 per kg. In the previous session, gold had fallen 0.6% while silver sank 4% or ₹2,500. After correcting the highs of August 7 ₹56,200, gold prices have been choppy in recent days. Silver prices have also dropped significantly from their highs of about ₹80,000 hits in August.
MCX Gold is supported on ₹49200 and resistance at ₹51,120, says Geojit Financial Services.
In global markets, gold prices changed little today, supported by a weaker US dollar and hopes for another coronavirus relief package announcement in the US On the other hand, global risk sentiment improved after upbeat US private payroll data Spot gold was flat at $ 1,884.67 per ounce.
“As long as gold prices remain above $ 1840, recovery rallies are expected to continue the day as well. However, it was necessary to break above $ 1900 to trigger big gains on the counter. An unexpected drop below $ 1840 is a sign of weakness, “says Geojit Financial Services in a note.
Hopes are rising that US lawmakers can finally craft a new virus rescue package for the world’s leading economy after months of stagnation. House Speaker Nancy Pelosi and Treasury Secretary Mnuchin held a series of talks this week with the aim of breaking the deadlock and both said they were “hopeful.”
Among other precious metals, silver was up 0.2% to $ 23.25 an ounce, platinum was up 0.4% to $ 891.95 and palladium was up 0.2% to $ 2,309.07.
“Gold is trading close to the key $ 1900 / ounce level and although the overall trend looks positive we can see turmoil as there are many uncertain factors such as the US stimulus plan, the Brexit negotiations between the EU and the UK and economic readings for major economies, “Kotak Securities said in a note. .
Silver has recovered from its recent lows. The white metal has benefited from the improved outlook for industrial demand amid a rebound in industrial activity in China and globally, the brokerage said.
In Indian markets, gold had fallen below ₹49,500 earlier this week, but has received support from lower levels as the US dollar index continued to decline from recent highs. The US dollar has softened as the market’s focus shifted to the US economy amid the first US presidential debate, efforts to reach consensus on new fiscal stimulus and some important economic indicators, analysts say. .
Gold is considered a hedge against inflation and currency depreciation. Despite the recent price correction, gold has gained 24% so far this year, supported by monetary stimulus from major central banks and governments.
Asian markets were mostly higher today after the latest data showed US private employers stepped up hiring in September. (With contributions from the agency)
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