Experts are of the view that yellow metal should be able to hold on to 50,250-50,000, and on the upside, crucial resistance is placed at Rs 51,000.

                             

India Gold December Futures eased slightly on October 29 despite a positive trend seen in the international spot prices. Experts are of the view that yellow metal should be able to hold on to 50,250-50,000, and on the upside, crucial resistance is placed at Rs 51,000.

On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.15 percent at Rs 50,420 per 10 gram at 0920 hours. December silver futures were trading 0.09 percent lower at Rs 60,082 per kg.

Gold and silver crashed on October 28 amid strength in the dollar index and upbeat US goods trade balance data. The dollar index gained and tested 93.50 marks after a heavy sell-off in the global equities due to the second wave of coronavirus in the US and EU.

Gold settled at $1879.20 per troy ounce with a loss of 1.71% and silver settled at $23.36 per troy ounce with a loss of 4.92%. Domestic markets were also settled on a weaker note.

“Global investors moved out from riskier assets and moved to safe haven buying in the dollar again. Gold slipped to four weeks lows and silver slipped to three weeks low in the international markets amid rise in COVID-19 pandemic infections in the U.S. and Europe, as well as other parts of the world, are fanning worries,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.


“At MCX, Gold has a support at 50250-50000 levels and resistance is placed at 50780-51000 levels. Silver is having support at 59500-59000 levels and resistance at 60800-61500 levels,” he said.

Jain further added that he expects both the precious metals could get support at lower levels gold is expected to hold 50000 and silver is expected to hold 59000 levels on a closing basis, and any dip in the prices towards support levels would be an opportunity to buy again.