Gold prices surge today as yellow metal hit 8-week high internationally; silver jumps over 2%

Globally, gold prices had been supported by weak greenback and considerations a couple of surge in COVID-19 circumstances. Image: PTI

Gold prices in India jumped over one per cent on Monday, taking cues from the worldwide prices the place yellow metal hit eight-week high. Globally, gold prices had been supported by weak greenback and considerations a couple of surge in COVID-19 circumstances which compelled many international locations for tighter restrictions regardless of vaccine rollout. On MCX, gold February futures had been buying and selling Rs 556 or 1.11 per cent increased at Rs 50,800 per 10 gram. While silver March futures had been ruling at Rs 69,520 per kg, up Rs 1,397 or 2.05 per cent. In the earlier 12 months, gold prices in India rallied 28.23 per cent in rupee phrases. According to an analyst, the gold and silver rally is anticipated to proceed this 12 months albeit at a slower tempo. “We need gold to trade above $1920 to really confirm that it’s reigniting its upward trend,” Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities, instructed Financial Express Online.

Patel stated that the setback for gold prices got here in 2020 when traders stopped shopping for gold as vaccines had been deployed in opposition to the virus, encouraging funding in belongings that carry out properly in periods of financial development. “We expect gold to trade in the range of 50200-51200 in MCX this week with a positive bias. Any correction around 50300 is an ideal opportunity to go long with a stop loss of 49800 and a target of 51200,” Patel stated.

Globally, COVID-19 circumstances continued to surge following which British Prime Minister Boris Johnson indicated harder lockdown restrictions. Japan is contemplating declaring a state of emergency for Tokyo and surrounding areas. Spot gold rose 0.8 per cent to $1,912.71 per ounce, whereas US gold futures climbed 1.1 per cent to $1,916.40.

Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers stated that the greenback has continued to slide decrease after Friday’s short-covering. The US Federal Reserve will launch the minutes from their newest coverage meeting on Wednesday. “Amid uncertainty regarding economic recovery, the sentiment is likely to be bullish in bullion in January,” Trivedi stated.

According to Bhavik Patel, gold fundamentals that also level in favour of gold are destructive actual returns on bonds, large authorities debt and threats of inflation. “Perhaps year 2021 would see an emergence of inflation we may not have seen in the last decade,” Patel added. Analysts at ICICI direct Research count on gold prices to stay within the vary of Rs 50000-59500 ranges within the short-term.

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