Markets News

Dollar Weakens – Yellow metal gains with increased US stimulus

Prices of yellow metal or gold have increased on January 21 backed by positive spot prices. The gold contracts were trading higher by a percentage value of 0.30% on Commodity Stock Exchange (MCX).

This value was on February when trading was higher by 0.30% at Rs 49,685 for 10 grams of gold.

Silver was also trading higher at Rs 67,456 per kilogram as per the month of March.

An extreme volatility was seen in the metal market with inauguration of Joe Biden. The good thing was, this was a positive volatility where metals extended gains and settled on green signal.

Comex gold was also trading higher close by $1,869/oz which is marginally higher. It gained 1.4 percent on the last day.

It is believed that the increased US stimulus expectations along with increasing US-China tensions, in addition of COVID is weakening the dollar. Simultaneously, the gold is getting supported as the dollar weakens.

In the domestic market as well, the gold settled at $1,866.50 per troy ounce in February. On the other hand, silver settled at $25.77 per troy ounce. A positive sign is seen in the domestic market regarding both the metals.

Buying dip for a target of Rs 50,000 per 10 gm is advisable.

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