If gold holds above Rs 55,150, a rally towards Rs 55,600 is possible, with crucial support placed at Rs 54,770, say experts.
Gold prices in India rose on August 6, tracking positive momentum in the international spot market. As long as gold holds above 55150, a rally towards 55,600 is possible, say experts. Crucial support is placed at 54,770 per 10 gm.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.37 percent at Rs 55,300 per 10 gram at 0920 hours. September futures for silver were trading 1 percent higher at Rs 72,645 per kg.
Gold and silver extend gains on August 5 and the yellow metal set a new record in the international and domestic markets.
Gold crossed $2,050 per troy ounce in intraday trade and settled with 1.50 percent gains at $2037.10. Silver outperformed gold and gained around 3.5 percent at $26.89 per troy ounce.
“Safe-haven buying leads the rally in both the precious metals. Bullion also gets support from the weakness in the dollar index, slower job growth in the US and fresh stimulus talks in the US,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect both the precious metals to remain firm. There may be some volatility at higher levels due to profit-taking but overall trend is positive.”
On MCX, if gold sustains above 55,155, the rally could extend towards 55,380-55,660 levels, Jain said, adding 54,770 will act as major support on a closing basis.
If silver sustains above 72,220, the rally could extend to 73,300-74,500, he said. The level of 70,700 is likely to act as a major support on a closing basis.
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Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex December gold contract was trading moderately higher near $2055/oz after a 1.4 percent gain on August 5. Gold has come off a record high level set the previous day but remains supported by a weaker dollar, lower bond yields, strong ETF inflows, increasing virus cases, mixed economic data, and persisting US-China tensions.
Gold looks set to test the next key level of $2100 amid current momentum, however, the sharp rise in a short span of time calls for some caution.Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver extended gains on August 5, supported by a weak Dollar, falling US Treasury yields and expectations of more stimulus measures to revive the economy.
Investors continue to remain buyers in safe-haven gold as they expect that the metal will hold its value better than other assets as the coronavirus cripples the global economy.
Technically, the MCX October gold contract ended solidly higher at 5,597 and traded with good volatility with good volumes and managed to hit an all-time at 55,597. Resistance holds at 55,700 levels and support is at 54,700-54,400 levels.
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