On Friday, October 23, On India’s Multi Commodity Exchange, gold December Futures increased after declining by more than 1% in the previous trading session. According to experts, investors can accumulate the gold on tips for a target of Rs 50,920 – 51,100 levels.
Additionally, on the Multi Commodity Exchange, December gold contracts increased by 0.15% and settled at Rs 50,884 per 10 grams. December silver futures dropped 0.04% and settled at Rs 62,587 per kg.
Significantly, on October 23, gold and silver futures dropped amid a recovery in the dollar index and fading U.S. stimulus talks. Gold and silver touched on a weaker note in the international markets.
The yellow metal touched $1,904.60 with a loss of more than 1%. While the white metal reached $24.71 per troy ounce with a loss of above 2%. Significantly, domestic markets also decreased.
Gold’s rise stopped as the greenback rebounded from its seven-week low
Additionally, gold’s 3-days raise stopped on October 23 as the greenback rebounded from its seven-week low and talks resumed on drag on among the White House and rival Democrat lawmakers for Coronavirus financial relief plan before the U.S. election.
According to Director at Prithvi Finmart, Manoj Jain, optimism over a stimulus deal faded on October 23 as negotiators reported distance stayed among the White House and the Democratic-led Congress for an agreement, although talks were continuing.
He added that they assume both the precious metals stay volatile due to volatility in the greenback and speculation over the U.S. stimulus; but, however-level support is foreseen in both the precious metals. Friday’s E.U. and U.S. manufacturing data will also give directions to both the precious metals.
Manoj Jain added that the yellow metal has supported at Rs 50,550 – 50,200 and resistance is seen at Rs 50,920-51,100 levels. Additionally, silver also has supported at Rs 62,000 – 61,600 and resistance at Rs 63,200 – 64,000 levels. Jain added that they suggest buying on a dip in gold nearly Rs 50,500 and silver approximately 61,800 levels.
On Thursday, International gold prices finished the session with declines after the greenback recovered supported by better-than-expected U.S. jobs data.
MCX gold December futures were incapable of staying up Rs 51,000 levels. However, took neat support at Rs 50,500 levels showing a sideways momentum in a range of Rs 50400-50950 levels.
Meanwhile, MCX Silver December has a resistance of its prior peak near Rs 64,000 levels where prices respected these levels. Prices made a low near Rs 61,800 levels, which means consolidation in a range of Rs 61,500-63,900 levels.