Gold prices opened lower on Wednesday as the dollar continued its upward movement for the sixth session in a row and crude oil prices eased. Indian equity benchmarks BSE Sensex and NSE Nifty50 also began Wednesday's session with cautious gains.
On MCX, gold rates were down 0.25 percent at Rs 50,970 per 10 grams after it opened at Rs 50,780 early Wednesday. Meanwhile, Silver rates slipped nearly 1 percent, touching Rs 58,017 per Kgs.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, expected gold and silver to remain volatile in today’s session.
"At MCX, gold is having support at Rs 50,880-Rs 50,720 and resistance at Rs 51,250-Rs 51,480 while silver is having support at Rs 58,000-Rs 57,550 and resistance at Rs 59,000-Rs 59,660," he said.
Kumar also suggested selling gold below Rs 51,000 with a stop loss of 51,200 for the target of Rs 50,700.
The drop in metal prices came as the dollar index continued its upward movement for the sixth session in a row. However, at the time of writing this report, US Dollar Index Futures was 0.09 percent lower at 113.023. The
rupee edged higher to 82.28 against the US dollar on Wednesday.
Moreover, in early trade, crude oil prices fell amid a rise in COVID-19 cases in China that triggered fears of slowing global demand. Brent crude futures were down 0.6 percent at $93.8 per barrel initially.
