On January 20, gold and silver increased in Indian markets. On Multi Commodity Exchange, February gold futures boosted by 0.27% and hit Rs 49,115 per 10 gram. Meanwhile, silver climbed 0.3% and settled at Rs 66,234 per kg. Significantly, in the previous session, the yellow metal rose by 0.2%, while the white metal advanced 0.9%. Moreover, American currency became weaker amid expectations of a massive U.S. stimulus. Hence, in global markets, the precious metal price saw an increase.
President-elect Joe Biden will be sworn into office on Wednesday. Investors will concentrate on his $1.9 trillion stimulus package plan to support the economy and speed up the vaccine distribution against coronavirus. According to reports, the U.S. has claimed 400,000 deaths.
On Wednesday, Spot gold rates increased 0.5% and settled at $1,848.30 per ounce, while the dollar index dropped 0.14% to 90.345. Moreover, the U.S. Treasury yields also fell.
According to Kotak Securities, market players are trying to evaluate what policy changes will be required. Joe Biden has already proposed an expansive $1.9 trillion stimulus package. Still, market players want more clarity about other problems like a tax hike, US-China relation, currency market involvement, etc.
After substantial gains last year, gold has decreased this year as Treasury yields grew along with the greenback. In August 2020, gold had hit a lifetime high of Rs 56,200 per 10 gram in global markets.
Additionally, other precious metals also witnessed gains. Silver advanced by 0.9% and settled at $25.42 an ounce. Platinum boosted 1.2% to $1.096.23, and palladium climbed 0.4% and touched $2,361.79.
Jain suggests buying in the gold around Rs 48,800 and the silver at around Rs 65,400
According to Manoj Jain, Head commodity and Currency Research at Prithvi Finmart, gold and silver are likely to remain volatile in today’s session ahead of Joe Biden’s speech.
Significantly, gold has support at $1,824-1,814 per troy ounce and resistance at $1,855-1,870 per troy ounce. Meanwhile, silver has support at $24.88-24.55 per troy ounce and resistance at $25.70-26.00 per troy ounce.
Manoj Jain added that gold has support at Rs 48,750 -48,550 and resistance at Rs 49,200 -49,440 levels at multi commodity exchange. He says that they recommend buying in the gold around Rs 48,800 with the stop loss of Rs 48,550 for the target of Rs 49,300. Meanwhile, he suggests buying in the silver around Rs 65,400 with the stop loss of Rs 64,800 for the target of Rs 67,200.