Gold October futures were trading Rs 280 or 0.53 per cent up at Rs 53,555 per 10 gram, while the silver September futures were ruling at Rs 70,400 per kg, up Rs 1,245 or 1.80 per cent in early trade on MCX
Gold prices were trading higher on Tuesday after rising 2 per cent in the previous session, supported by lower US bond yield and escalation in US-China trade tensions. Gold October futures were trading Rs 280 or 0.53 per cent up at Rs 53,555 per 10 gram, while the silver September futures were ruling at Rs 70,400 per kg, up Rs 1,245 or 1.80 per cent in early trade on MCX. “US President Trump promised tax credits for firms who relocate manufacturing facilities to the United States from China. Trump’s administration also stated it will further tighten restrictions on Chinese telecommunications firm Huawei. This continuous rising heat between both the US and China is lending support to the metal prices,” said Navneet Damani, VP, Motilal Oswal Financial Services.
Gold analysts believe that gold prices are surging after American investor Warren Buffett bought a stake in Barrick Gold Inc., in the second quarter which is one of the biggest gold and copper producers. “Hence, the gold sentiments have turned positive,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers. Analysts also believe that slow global growth prospects amid the rising threat of COVID-19 pandemic will continue to provide support to the yellow metal. “Traders can go for buy in gold at Rs 53,100 levels with the stop loss of Rs 52,750 levels and the target of 53,700 levels. Buy for silver, as well, at Rs 69,500, with the stop loss of 68,000 levels and target of Rs 72,000,” said Anuj Gupta, DVP- Commodities and Currencies Research at Angel Broking.
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Globally, gold prices edged higher supported by a weaker dollar. Spot gold edged up 0.1% to $1,987.51 per ounce. US gold futures eased 0.3% to $1,993.30 per ounce. Investors await the minutes from the US Federal Reserve’s last policy meeting due for release on Wednesday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.33% to 1,252.38 tonnes on Monday. “Broader trend on COMEX could be in the range of $1975- 2010 and on domestic front prices could hover in the range of Rs 53,100-53,870,” Damani added.