BackGold prices today higher but down ₹5,000 from record highs, silver rates surge
A weaker dollar and concerns over the fallout of surging coronavirus cases globally helped boost gold pricesBut the stalemate over US stimulus talks capped gold's rise
PremiumGold and silver prices edged higher in Indian markets today amid advance in global rates of the precious metals. On MCX, December gold futures rose 0.28% to ₹51,073 per 10 gram while silver futures gained 1% to ₹62496 per kg. Gold had edged up 0.17% in the previous session while silver had declined 0.75%. MCX gold faces resistance at ₹51,480 while has support at ₹50,110, domestic brokerage Geojit said in a note.
In global markets, gold prices moved higher today, boosted by a weaker dollar and concerns over the fallout of surging coronavirus cases globally. Spot gold rose 0.3% to $1,907.77 per ounce.
The dollar index slipped 0.08% against a basket of currencies, making gold cheaper for holders of other currencies.
Surging coronavirus infections around the globe are worrying investors, who are already cautious with the US election a week away while the 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 debasement. In India, gold prices had hit a record high of ₹56,200 in August before losing momentum.
Among other precious metals, silver rose 0.5% to $24.43 per ounce, while platinum climbed 1% to $878.50 and palladium was up 0.3% to $2,358.03.
"Gold may edge higher on weak US dollar and a correction in global equities. Hopes of more fiscal stimulus measures and unresolved US- China tensions will also offer lower level support to the commodity," said Hareesh V, Head of Commodity research, Geojit Financial Services.
Breaking the immediate resistance of $1912 is necessary to trigger further upticks for the day, Geojit said in a note. "Else, there are chances of a mild correction. Anyhow sharp liquidation is expected only a close below the stiff support of $1880," the brokerage added.
Apart from stimulus talks, gold traders will be watching the progress on EU-UK trade talks. The UK left the European Union in January but the two sides are trying to clinch a deal that would govern nearly a trillion dollars in annual trade before a transition period of informal membership ends on December 31.
Also on their radar will be Q3 US GDP data due on Thursday which is anticipated to be the strongest on record following a record dive in the prior quarter as many businesses were shuttered by the pandemic. (With Agency Inputs)
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