Gold, Silver prices in India on October 21: Gold prices gained momentum in the Indian commodity market on Wednesday and traded above the key psychological level of Rs 50K, tracking positive cues from overseas.
In global markets, the gold prices gained as renewed hopes for a new round of US stimulus drew investors to the metal that is considered as a hedge against inflation and currency debasement. Moreover, the weaker dollar also elevated yellow metal appeal today.
On MCX, Gold price traded Rs 60 higher at Rs 50,970 today over its previous close of Rs 50,910 per 10 gm. Silver September Futures traded Rs 320 higher at Rs 63,444 per kg today.
Bullion steadied overseas from recent fall and gained on expectations of a coronavirus stimulus bill in the US ahead of the deadline on Tuesday, before the presidential elections. Record Covid-19 cases from Europe also kept demand high of the less risky asset.
Overseas, spot gold hit a one-week peak at $1,920.27 per ounce, while US gold futures were up 0.4% at $1,922.80. Silver rose 1.4% to $24.98 per ounce.
The dollar index fell to a one-month low against a basket of major currencies, amid news of renewed government spending to recover the US economy from the coronavirus pandemic-induced recession.
Since last week, gold hovering near the psychologically important level of $1,900, due to delay in negotiations over a new US coronavirus relief.
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."
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Yesterday Gold and Silver increased sharply on the back of expectation of covid - 19 stimulus package before US election. Correction in Dollar index also supportive for gold as a safe-haven asset. Gold increased by 0.44% and closed at 50910 levels and silver increased at 1.66% and closed at 63,124 levels. In the international market, gold is trading at $1918 per ounces and Silver is trading at $25.00 per ounces. On the domestic front, the physical demand for gold and silver increasing on Festival demand. "
He added, "As for today traders can go for buy-in gold at Rs 50,900 levels with the stop loss of Rs 50650 levels for the target of 51500 levels. They can also go for buy-in Silver at Rs 63,200 levels, with the stop loss of 62,400 levels and for the target of 64,400 levels. We expect gold may test $1950 and Silver may test $26.50 levels soon."