Gold was trading marginally higher and holding above Rs 50,000 per 10 gm in Indian markets on December 29, tracking a positive trend in international spot prices. On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.11 percent at Rs 50,070 for 10 gram at 0920 hours. March silver was trading 0.19 percent lower at Rs 68,685 a kilogram.
Experts say both gold and silver could remain volatile but investors can use dips to buy. Investors could use mild dips towards 49,800 for a target of Rs 50,500.
Gold and silver showed strength in the early trading sessions the previous day after US President Donald Trump signed the COVID-19 stimulus bill. Gold tested $1,900 per troy ounce but couldn’t hold the gains and slipped.
Both the precious metals settled on a mixed note. February gold futures contract settled at $1,880.40, while March silver settled at $26.54 per troy ounce.
The precious metals market has been buoyed after Trump over the weekend signed the COVID-19 aid bill that US Congress agreed upon just before Christmas.
“Some health experts are saying January will be the worst month yet, as far as the human toll. Restrictions on many businesses in many locations remain in place and may get tighter in January,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect both the precious metals to remain volatile in today’s session. At MCX, gold has support at 49800-49550 and resistance is placed at 50330-50580. Silver has support at 68100-67500 and resistance is placed at 69600-70500 levels,” he said.
Jain suggests buying gold at around Rs 49,800 with the stop loss of Rs 49,550 for a target of Rs 50,500. Silver can be bought around Rs 67,800 with a stop loss of Rs 67,000 for the target of Rs 70,000.
Comex gold was trading marginally higher near $1,882 after a 0.1 percent decline the previous day. Gold was trading mixed as support from the US stimulus deal, increasing virus concerns and ETF outflows were countered by improving risk sentiment and progress on COVID-19 vaccination.
While general momentum looks positive due to the US stimulus, a sustained rise may come only if there are fresh triggers or if the price manages to close above the $1,900.