Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Monday tracking gains in the international spot prices amid a weak US dollar and hopes of more COVID-19 stimulus measures under US President-elect Joe Biden. Silver price also jumped more than 1 percent to trade above Rs 66,000 level.
At 11:40 am, gold futures for December delivery rose 0.41 percent to Rs 52,379 per 10 grams as against the previous close of Rs 52,167 and opening price of Rs 52,270 on the MCX. Silver futures traded 1.34 percent higher at Rs 66,210 per kg. The prices opened at Rs 65,900 as compared to the previous close of Rs 65,335 per kg.
“Gold prices traded on a positive note extending gains from the last week, as the dollar weakened after Joe Biden’s victory in the US presidential election boosted hopes for a larger coronavirus relief bill,” said Ajay Kedia, director, Kedia Commodity Comtrade.
Meanwhile, gold consumption in China surged to 224.8 tonnes from July to September that represents a 28.71 percent QoQ increase. At the same time, the consumption of gold bars and coins increased by 66.73 percent QoQ to reach 65.54 tonnes, according to data from the China Gold Association.
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd noted that the physical demand also increasing in India on the coming festival season.
“Traders can buy gold at Rs 52,000 levels with the stop loss of Rs 51,700 levels for the target of Rs 52,600. Buy silver at Rs 65,000 levels, with the stop loss of Rs 64,200 levels and for the target of Rs 66,300,” Gupta added.
International Gold prices firmed on Monday, bolstered by a weaker dollar and hopes of more coronavirus stimulus measures under US President-elect Joe Biden.
Spot gold rose 0.3 percent to $1,956.57 per ounce. On Friday, it hit $1,960.13, the highest since September 17. US gold futures gained 0.3 percent to $1,956.60 per ounce.
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