Analysts say the broad bullish outlook remains intact due to uncertainties surrounding the global economic recovery, hopes of fresh stimulus measures from central banks and a weak US dollar
Gold prices moved higher today after witnessing a sharp fall in the previous session. In the international markets too gold prices rose as the dollar weakened following the downbeat US jobless claims data. The gold October futures were trading Rs 186 or 0.36 per cent higher at Rs 52,337 per 10 gram, while silver September futures were ruling at Rs 68,682 per kg, up Rs 1,087 or 1.61 per cent on MCX. “Robust investment demand is one of the major factors supporting gold. However with recent consolidative moves in the yellow metal ETF investors have moved to sidelines,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Gold and silver prices have been trading volatile in domestic markets after hitting a new all-time high of Rs 56,191 per 10 gram and Rs 77,949 per kg on August 7. Gold prices slid back below the $2000/oz figure, with sellers seemingly poised to defend $2000 level. “Alternatively, a push above the swing high at $2015.65 would give bulls an edge over bears. Intraday we would recommend taking long positions with an expected target of 52500-52600 while keeping stop loss around 52000,” Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online. Patel also added that there will be no significant rally on either side and gold might slide into consolidation with trading range limited within 51000-53000 for the short term.
Analysts say the broad bullish outlook remains intact due to uncertainties surrounding the global economic recovery, hopes of fresh stimulus measures from central banks and a weak US dollar. Globally, spot gold was up 0.4% at $1,949.83 per ounce. Gold has risen nearly 0.5 per cent so far this week after registering its worst week in five months, according to Reuters. US gold futures rose 0.6 per cent to $1,958.30. “Gold may witness choppy trade however buying interest may re-emerge at lower levels as the general outlook for the US dollar still remains weak and US bond yield expected to drop further,” Ravindra Rao added.
Among other metals, silver gained 0.6 per cent to $27.38 per ounce, platinum climbed 0.5 per cent to $922.24, and palladium rose 0.2 per cent to $2,185.54. On the domestic equity front, BSE Sensex was trading 271 points or 0.71 per cent higher at 38,491 while the broader Nifty 50 index was ruling at 11,390, up 78 points or 0.69 per cent.