Gold slipped nearly 1 percent on October 5, tracking a muted trend in the international spot prices. On the Multi-Commodity Exchange (MCX), December gold contracts were trading lower by 0.85 percent at Rs 50,138 per 10 gram at 0920 hours. December silver futures were trading 0.95 percent lower at Rs 60,565 per kg.
Experts are of the view that below Rs 50,000, the next big support for the yellow metal is placed at Rs 49800 per 10 gm. It could retest Rs 51,200-51,500 on the upside.
Domestic gold and silver ended with modest gains on October 1. Indian markets were shut the next day on account of Gandhi Jayanti.
Gold and silver rebound last week after previous weeks’ sell-off. Gold gained 2.14 percent and settled at $1,904 per troy ounce and silver was up 3.94 percent at $23.87 per troy ounce at Comex division on October 2.
Both the precious metals also settled on a positive note in the domestic market despite the strength in the rupee. Gold settled at 50,570 per 10 gram while silver settled at Rs 61,145 per one kilogram.
Weakness in the dollar index, the hope of a second US stimulus and the news of US President Donald Trump testing positive for COVID-19 supported safe-haven buying in both the metals.
The dollar index slipped around 1 percent from the previous week to below 94, experts said.
“We expect both the precious metals to remain positive this week and dip in the prices will be an opportunity to buy again. At MCX, gold is expected to test 51,200-51,500 levels again this week, while 49,800 will act as a major support,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart
Silver, too, is also expected to trade with a positive bias and could test $24.60-25.20 per troy ounce, with $23.20 acting as a major support. On MCX, silver is expected to test Rs 63,500-64,800 levels again, with 59,800 acting as a major support, Jain said. “We expect that the buy-on-dip strategy will work for this week,” he said.
