Gold, Silver prices today: Gold price in the Indian commodity market traded flat on Monday for the second straight session, above the key psychological level of Rs 50K. On MCX, Gold price traded flat at Rs 50,605 today over its previous close of Rs 50,547 per 10 gm. Silver September Futures traded Rs 112 lower at Rs 61,564 per kg today.Bullion steadied on expectations of a coronavirus stimulus bill in the US before the presidential election.
Overseas, gold traded in range-bound trade on Monday on hopes of a fresh US fiscal stimulus package before elections but major gains were restricted due to strong dollar. Spot gold was up 0.1% at $1,900.79 per ounce, while comex gold traded flat at $1,900 per ounce for the second session. Silver fell 0.6% to $24.15 per ounce.
Gold has gained nearly 26% this year as major central bankers have called for renewed government spending to recover major economies from the coronavirus pandemic-induced recession. Moreover, the recent spike in coronavirus cases across major economies added to the uncertainty over the global economic recovery.
The dollar held on to gains supported by political uncertainty around the US elections and as investor turned optimistic about COVID-19 vaccine. Gold price fell last week as hopes for US stimulus happening before November US elections faded impacting the attractiveness of the yellow metal.
On gold's outlook, Hareesh V, Head of Commodity Research, Geojit Financial Services said," Weak US dollar, expectations of more fiscal stimulus measures from the US before the election and unsolved US-China tensions continue to support the yellow metal. However, easing safe-haven demand amid hopes of global economic recovery would dent major rallies in the commodity."
Commenting on London spot's technical outlook, he added," If the support of $1840 remains undisturbed, expect rallies to continue, but it is required to break $1920 to continue major rallies. An unexpected drop below $1820 would extend further selling pressure."
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"Last week, spot Gold prices ended lower by 1.6 per cent & Spot silver ended lower by 3.8 per cent to close at $24.2 per ounce as the strengthening of the U.S. currency made the Dollar-denominated Gold less appealing for other currency holders. The Dollar rallied after U.S. Treasury Secretary Steve Mnuchin stated that the chances of a deal over the new coronavirus relief fund seemed to be unlikely before the November 20 elections. Gold prices were further pressurized as Chinas economy continued to expand on September 20 reflecting the improvement in overseas demand which boosted the risk appetite amongst investors. However, the International Monetary Fund expressing worries over the outlook for many emerging markets as the virus continued to spread limited the losses for the safe haven, Gold. Hopes over additional corona relief fund by the U.S. before the upcoming elections is expected to support Gold. On the MCX, gold prices are expected to trade higher in today's session."
He added, "As for today traders can go for buy-in gold at Rs 50,300 levels with the stop loss of Rs 50000 levels for the target of 50800 levels. They can also go for buy-in Silver at Rs 61,000 levels, with the stop loss of 60,200 levels and for the target of 62,100 levels."
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