Gold prices in India rose more than 1 percent on January 4 tracking a positive trend in international spot prices, which hit an eight-week high as global COVID-19 cases spiked and countries pushed for more lockdowns despite vaccine rollouts.
On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 1.05 percent at Rs 50,771 per 10 gram at 0920 hours. March silver was trading 2.2 percent higher at Rs 69650 a kilogram.
Global coronavirus cases continued to climb, with British Prime Minister Boris Johnson hinting at tougher lockdown restrictions, while Japan was considered declaring a state of emergency for capital Tokyo and surrounding areas, said a Reuters report.
Britain will become the first country to roll out the low-cost and easily transportable AstraZeneca and Oxford University COVID-19 vaccine on January, the report said.
On January 1, gold and silver prices settled on a steady note in international markets. Gold and silver surged amid weakness in the dollar index and the passing of a stimulus bill in the United States.
Gold prices crossed $1,900 per troy ounce and showed a firm trend. As COVID-19 spread across the globe last spring, investors rushed to precious metals as a financial safe haven, suggest experts.
“Providing financial protection is not the only role that precious metals are playing in the fight against COVID-19. The metals also have broad applications in the medical field, well beyond the dental uses most people associate with them,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We expect both the precious metals to remain volatile in today’s session after a long weekend. Gold has support at $1,884-1,870, while resistance at $1,914-1,928 per troy ounce. At MCX, gold has support at Rs 50,000-49,800 and resistance at Rs 50,440-50,600 levels and silver is having support at 67500-66800 and resistance at Rs 68,800-69,600 levels,” he said.
Jain suggests buying gold at around Rs 50,000 levels with a strict stop loss of Rs 49,770, and in silver long positions can be initiated around Rs 67,500 with strict stop loss at Rs 66,600 for a target of Rs 69,500 levels.
Sriram Iyer, Senior Research Analyst, Reliance SecuritiesDomestic bullion could start higher on Janaury 4, tracking international prices. Technically, MCX Gold February could see a gap-up opening.
Gold has sustained above 65-day moving average placed at 50,050, indicating a positive trend in the counter.
Resistance is at Rs 50,600-Rs 50,900. Support at Rs 50,300-Rs 50,100.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold gained over 1 percent to trade near $1,920/oz after gaining 0.1 percent in the previous session. Gold was trading higher supported by weaker dollar, US stimulus measures, increased US-China tensions and rising virus cases, and more restrictions being imposed to limit the spread.