Gold and silver prices rose today in Indian markets amid rising world rates for precious metals. On MCX, December gold futures rose 0.28% to ₹51.073 for 10 grams, while silver futures gained 1% to ₹62496 per kg. Gold was up 0.17% in the previous session, while silver was down 0.75%. MCX Gold faces resistance at ₹51,480 while supported on ₹50,110, national broker Geojit said in a note.
In global markets, gold prices rose today, driven by a weaker dollar and concerns about the consequences of the increase in coronavirus cases globally. Spot gold rose 0.3% to $ 1,907.77 an ounce.
The dollar index fell 0.08% against a basket of currencies, making gold cheaper for holders of other currencies.
Rising coronavirus infections around the world are worrying investors, who are already wary of US elections a week away, while stimulus talks have dragged on.
Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency degradation. In India, gold prices reached a record high of ₹56,200 in August before losing momentum.
Among other precious metals, silver was up 0.5% to $ 24.43 an ounce, while platinum was up 1% to $ 878.50 and palladium was up 0.3% to $ 2,358.03.
“Gold may rise on the weakness of the US dollar and a correction in global stocks. Hopes for more fiscal stimulus measures and unresolved tensions between the United States and China will also offer a lower level of support for the commodity.” said Hareesh V, head of commodities research at Geojit Financial. Services.
It is necessary to break the immediate resistance at $ 1912 to trigger further increases during the day, Geojit said in a note. “Otherwise, there are chances of a slight correction. Anyway, a strong sell-off is expected just a close below the strong support at $ 1880,” the brokerage added.
In addition to the stimulus talks, gold traders will be keeping an eye on the progress of trade talks between the EU and the UK. The UK left the European Union in January, but the two sides are trying to close a deal that would govern nearly $ 1 trillion in annual trade before a transition period of informal membership ends on December 31.
Also on your radar will be US Q3 GDP data to be released on Thursday, which is anticipated to be the strongest on record after a record drop in the previous quarter as many companies were shut down for the pandemic. (With contributions from the agency)
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