Experts expect gold prices could reclaim 38,050 per 10 gram again in current week amid geo-political tensions.
Gold prices traded higher in the futures trade on September 23 amid rising geo-political tensions between Iran and Saudi Arabia.
The yellow metal gained further at Rs 37,697 per 10 gram in early trade, rising 0.31 percent or Rs 118, at 0901 hrs.
MCX Gold prices held crucial support of Rs 37,500 per 10 gram and closed at Rs 37,727 on Friday while MCX Gold October futures gained 0.11 percent at Rs 37,686.
Due to strength in rupee and rally in equities, yellow metal prices were in pressure in domestic markets last week.
Overall Gold and Silver prices consolidated in the range last week. The price was supported after US said it would deploy additional troops in Saudi Arabia and UAE for precautions against any further attack.
Spot Gold prices held crucial support of $1,500 an ounce and closed at $1,513 in international market last on Friday. Gold gained around 1 percent in international market last week.
Experts expect Gold prices could reclaim 38,050 per 10 gram again in current week amid geo-political tensions. According to them, silver prices are likely to move towards 47,100-47,300 levels.
“We expect geo-political tensions between Iran and Saudi Arabia could support Gold prices this week and $1,500 an ounce expected to be hold. At MCX, prices are expected to hold 37,330 and could test resistance levels of 38,050 again,” Manoj Kumar Jain, Director at IndiaNivesh Commodities Pvt. Limited told Moneycontrol.
Veeresh Hiremath, Head, Commodity Research, Karvy Comtrade said though the economic numbers from the US are better than expectations, the global economic slowdown is still a cause of concern, which will attract investors’ attention towards a safe asset i.e. Gold.
Silver prices in the futures trade on MCX also gained further at Rs 46,464 per kg, up Rs 938 or 2.02 percent.
At MCX, silver prices held crucial support of Rs 45,800 per kg and closed at Rs 46,523 last Friday. Silver also held crucial support of $17.40 per ounce in international market and closed at $17.83 on September 20.
Jain expects silver prices to hold Rs 45,800. “If prices sustain above Rs 46,700, could again show strength towards Rs 47,100-47,300 levels,” he said.