Gold prices edged higher in Indian markets today, tracking firm global prices. On MCX, gold futures prices were up 0.48% to ₹49,099 per 10 gram, after hitting a record high of ₹49,348 in the previous week. Silver rates surged today, rising 2% to ₹52,342 per kg. MCX August futures have resistance at ₹49350 and support at ₹47,400, Geojit Financial Services said in a note.
In global markets, spot gold was up 0.1% at $1,800.71 per ounce, holding above the key $1,800-per-ounce level, as worries over surging coronavirus cases around the world kept the safe-haven metal underpinned.
"If prices hold above $1770 expect continuation of bullish bias in the counter. However, major resistance is seen at $1832 followed by $1882 levels. An unexpected drop below $1720 could negate the buying momentum and take prices lower," Geojit Financial Services said.
US-China tensions also supported gold prices. US President Donald Trump said on Friday he was not currently thinking about negotiating a "Phase 2" trade deal with China as relations between Washington and Beijing sour over the pandemic and other issues. Gold is used as a safe investment during times of political and financial uncertainty.
"MCX gold edged higher in tandem with Comex gold which is holding above the key $1,800, as worries over surging coronavirus cases around the world kept the safe-haven metal underpinned. In the absence of any major economic data, focus would be on the safe haven investment demand amid worsening the US China relations and rising covid counts," said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.
Physical gold sold at a premium in India last week for the first time this year, driven by plunging imports, Reuters reported.
Among other precious metals, palladium gained 0.5% to $1,979.96 per ounce, platinum rose 1.3% to $824.80 and silver climbed 0.5% to $18.75.
According to latest data, gold exchange traded funds or gold ETFs in India saw hefty net inflows of over ₹3,500 crore in the first six months of this year as investors continued to hedge their exposure to riskier assets amid the COVID-19 crisis.
In comparison, investors had pulled out ₹160 crore from this asset class in January-June 2019, according to the latest data available with the Association of Mutual Funds in India (Amfi).
(With Agency Inputs)