Gold, Silver prices in India on July 15: Gold price in India corrected after trading near record highs today in line with global commodity markets amid rising coronavirus cases and ongoing tensions between US and China.
Gold futures on MCX were trading Rs 109 points lower at Rs 49,150 per 10 gm today against the previous close of Rs 49,259 per 10 gm, after hitting a lifetime high of Rs 49,348 in the previous week. Gold August Futures today touched an intraday high of 49,237 and a low of 49,114 today, after opening at 49,228 per 10 gm.
Silver futures gained Rs 227 to trade at 52,876 per kg today. Gold and silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought safe havens during coronavirus crisis.
The yellow metal gained momentum in US markets on stronger than expected US inflation figures and after Fed Governor Lael Brainard called for large scale asset purchase by Central Bank to support the economy. BoJ policy meeting outcome is also expected today. Traders also said Global GDP seems to be contracting with a fall in growth from Europe to Asia to the US, further strengthening demand for the safe-haven asset.
However, hopes of coronavirus vaccine development kept gains checked.
Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold.
Spot gold remained steady and in demand in the overseas markets today. Spot gold price steadied above its eight-year high at $1,800 per ounce hit last Tuesday and traded flat at its last close of $1,810.60 today after hitting a 52-week high of Rs 1,819.
Coronavirus has infected more than 13 million people worldwide so far and cases continue to rise in the United States, with many states temporarily halting their reopening of their economies to stem the outbreak.
In terms of Spot gold's technical outlook, experts suggest that prices will continue to edge higher as long as they stay above $1,790.
Resistances for spot gold are seen at $1830 followed by $1882, said Geojit Financial in its note and added that an unexpected drop below $1770 could negate the buying momentum and take prices lower.
Positive momentum would continue as long as prices stay above $1790. Next resistances are seen at $1830 followed by $1882. Meanwhile, an unexpected drop below $1770 could negate intraday buying expectations and take prices lower. For MCX Gold Futures, the brokerage estimated the resistance at Rs 49,300/51,500 and support at Rs 48,540.
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