At 11:30 am, gold futures for April delivery rose 0.33 percent to Rs 49,099 per 10 grams as against the previous close of Rs 48,936 and opening price of Rs 49,050 on the MCX. Silver futures for March delivery traded 1.68 percent higher at Rs 68,730 per kg. The prices opened at Rs 68,641 as compared to the previous close of Rs 67,595 per kg.
“The trend in precious metal prices seems positive on hopes of US stimulus package and rising coronavirus cases. Short covering also lifted silver prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold prices were steady on Friday as investors waited for developments around a US stimulus package, although the metal was on course to post a weekly and monthly decline hurt by a stronger dollar, a Reuters report said.
Spot gold was unchanged at $1,840.91 per ounce. Prices were down 0.6 percent for the week and 2.9 percent for the month. US gold futures rose 0.1 percent to $1,839.70.
The dollar rose 0.2 percent, making gold expensive for holders of other currencies.
Global gold demand for gold fell to its lowest in 11 years in 2020, while India’s consumption fell to its lowest in 26 years, the World Gold
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold
On the domestic front, the medium-term outlook for gold and silver looks bullish, said Kedia.
“On MCX, gold may face resistance at Rs 49,180 level, while support is placed at Rs 48,450 level. Support for silver is seen at Rs 67,200 level and resistance is placed at Rs 70,500 level,” Kedia said.
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