Gold Price Today: Hold Below Rs 51,000, Support Level 50,500

Gold Price Today : India Gold October Futures slipped below Rs 51,000 per 10 gm on September 8 following a muted trend seen in the international spot prices as the US Dollar strengthened. Investors await the outcome of the European Central Bank meeting this week.

Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement, said a Reuters report.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.43 percent at Rs 50,843 per 10 gram at 0920 hours. September silver futures were trading 0.5 percent lower at Rs 67,880 per kg.

Experts are of the view that prices of both Gold and Silver are likely to remain volatile but should get support at lower levels. Crucial support for MCX Gold is placed at Rs 50,800-50,600 levels while on the upside resistance are placed at Rs 51,200 per 10 gm.

Both the precious metals showed positive trends in the domestic markets on Monday amid weakness in the rupee. The US markets were closed on account of the Labour Day holiday.

At MCX, gold settled above Rs 51,000 while Silver settled at Rs 68,271 with a gain of over 1 percent. However, the dollar index also gained and traded above 93 levels.

Precious metals also got support from the sell-off in global equities and fear of the second wave of coronavirus. Coronavirus cases are increasing again in most of the European and Asian countries, suggest experts.

“Geopolitical tensions and lower global GDP data are also supporting precious metals at lower levels. We expect both the precious metals remain volatile and continue to get support at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold has support at $1910-1900 per troy ounce and resistance at $1,944-1,958 per troy ounce. At MCX, gold is having support at Rs 50,800-50,660 and resistance at Rs 51,200-51,440 levels,” he said.Jain further added that Silver has support at $26.55-26.20 per troy ounce and resistance at $27.00-27.40 per troy ounce. At MCX, silver has support at Rs 67,500-66,800 levels and resistance is placed at Rs 68,800-69,100 levels.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver ended weak on Monday as the dollar strengthened. However, economic uncertainties limited losses for the precious metal as investors awaited developments from central banks.

Investors now focused on the European Central Bank’s policy decision on Thursday. International gold and silver remained under pressure this Tuesday morning in Asian trade as the US Dollar started with gains this Tuesday.

Domestic bullion could trade flat-to-lower on Tuesday. Technically, MCX Gold October has bounced back from Rs 50400 levels and ended on a positive note above Rs 51000 levels.

However, Rs 51300 could act as a hurdle for further upside movement. It could trade in a range of 5 Rs 0700-51200 levels.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades little changed near $1933/oz as support from mixed economic data, rising virus cases, increased US-China tensions, Brexit uncertainty, Fed’s dovish stance is countered by firmer US dollar and weaker investor buying and consumer demand.

Gold may remain directionless unless there are fresh triggers however buy on dips is recommended as global uncertainty may increase safe-haven appeal. – Money Control

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