Yellow metal exchange surges, purchase for a target of Rs 49,300

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Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday. Silver price also rose above Rs 62,000 level. Joe Biden will be sworn into office on Wednesday and investors will be focused on his $1.9 trillion stimulus package plan to boost the economy.

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On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.27 percent at Rs 49,117 for 10 grams at 0920 hours. March silver was trading 0.35 percent higher at Rs 66,268 a kilogram. Experts are of the view that investors can look at buying yellow metal on dips for a target of Rs 49,300 while Silver can also climb back above Rs 67,000.

Gold and silver prices gained on Tuesday amid weakness in the dollar index and US Treasury nominee Jennet Yellen hints at a big fiscal stimulus. Gold February futures contract settled at $1840.20 per troy ounce whole Silver March futures contract settled at $25.32 per troy ounce. Both the precious metals settled on a positive note in the domestic markets.

“We expect both the precious metals to remain volatile in today’s session ahead of U.S. President-elect Joe Biden’s speech. Gold is having support at $1824-1814 per troy ounce and resistance at $1855-1870 per troy ounce; silver is having support at $24.88-24.55 per troy ounce and resistance at $25.70-26.00 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

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“At MCX, Gold has support at Rs 48750-48550 and resistance is placed at Rs 49200-49440 levels. We suggest buying in the gold around Rs 48800 with the stop drop of Rs 48550 for the target of Rs 49300 and in the silver around Rs 65400 with the stop drop of Rs 64800 for the target of Rs 67200,” he said. Earlier on Tuesday, gold prices remained steady in the domestic market after witnessing a continued downward slope for a month. However, losses have been limited in India presently.

Published by Riya Sharma on 20 Jan 2021

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