Gold was trading flat in but above the important Rs 50,000 per 10 gm mark in the Indian markets on November 20, tracking a muted trend in international spot prices.
On the Multi-Commodity Exchange (MCX), December gold contracts were trading higher by 0.10 percent at Rs 50,040 per 10 gram at 0920 hours. December silver futures were trading 0.4 percent higher at Rs 61,757 per kg. Experts are of the view that investors can look to buy the dips towards Rs 49,800.
Gold and silver plunged on November 19 amid hopes of COVID-19 vaccine, strength in the dollar index and upbeat US housing data. December gold futures contract settled at $1864.50 per troy ounce and silver contract settled at $24.10 per troy ounce.
Both precious metals settled on a weaker note in the domestic market as well. December gold settled at Rs 49,992 per 10 gram while silver futures settled at Rs 61,510 per kilogram.
The dollar index climbed again and crossed the 92.50-mark. Upbeat US housing data also pushed both the precious metals lower, experts said.
“Rising unemployment in the United States due to COVID-19 and coronavirus cases support precious metals at lower levels. Further stimulus talks in the United States also support gold and silver at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect gold to hold the crucial support of $1,840 per troy ounce and silver is expected to hold key support levels of $23.70 per troy ounce on a closing basis in the Comex division. At MCX, gold has support at 49,800-49,660 and resistance at 50,200-50,400 levels,” he said.
Jain favoured buying the dip in the gold at around 49,800 with a strict stop loss of Rs 49,550 for the target of 50,200. Silver can be bought at around Rs 61,000 with a strict stop loss of Rs 60,500 and a target of Rs 61,200.