Gold Prices Today : Renewed COVID fears likely to drive yellow metal up

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Gold price in India

Gold Prices Today: Gold was set on November 26 for its worst week in five months, as prices were hammered by increasing bets that the US Federal Reserve would accelerate stimulus tapering, and raise interest rates sooner to curb inflation.

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On the Multi-Commodity Exchange (MCX), the gold contracts were up 0.41 percent to Rs 47,614 for 10 grams at 9.38am on Friday. Silver futures shed 0.06 percent to Rs 63,115 a kilogram.

COMEX gold trades modestly higher near $1,797/oz supported by safe haven buying on the back of the emergence of a new variant of COVID virus. A drop in US bond yields and pause in the US dollar index are also supporting the price.

Rise in Chinese imports showed a robust demand for gold. Lack of investor interest and increased anticipation of of Fed’s monetary tightening, however, weighed on the prices. Gold may trade higher as the market reacts to new virus-related development. A sharp rise is though unlikely with focus still on Fed, said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, at Kotak Securities.

Gold Prices Today: Precious metals traded sideways overnight and slightly flattening US bond yield let it close flat. Prices look oversold at this level and a bounce is expected. The dollar index remained down 0.13 percent in the previous trading session which may support uptick.

On the MCX, gold has support at Rs 47,250 and is likely to test resistance levels of Rs 47,850-48,000. Strong industrial metals may push silver prices towards Rs 64,000.

Gold and silver traded steady in the international markets on Thursday, due to holiday in the US markets. Both the precious metals were unchanged in the international markets. We expect gold prices to test $1,800 per troy ounce and silver prices could test $24 per troy ounce in the upcoming sessions. Gold has support at $1,772-1,758 per troy ounce and resistance at $1,796-1,810 per troy ounce, while silver has support at $23.20-22.94 per troy ounce and resistance at $23.80-24.10 per troy ounce.

On the MCX, gold has support at Rs 47,250-47,100 and resistance at Rs 47,660-47,850, while silver has support at Rs 62,660-62,220 and resistance at Rs 63,600-64,100. We suggest buying gold above Rs 47,400 with a stop loss at Rs 47,180 for a target of Rs 47,800 and silver around Rs 62,900 with stop loss at Rs 62,500 for a target of Rs 64,000.

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