Gold price trading flat, silver rates fall to Rs 62,000

Gold, Silver prices in India on October 28: Gold price steadied from recent fall and traded flat with negative bias on Wednesday, near the key psychological level of Rs 50K. Overseas, weak dollar and concerns over the second wave of coronavirus in many countries forced investors to shift to safe-haven asset.

On MCX, Gold price traded flat at Rs 50,922 today, over its previous close of Rs 50,960 per 10 gm. Silver September Futures traded Rs 281 lower at Rs 62,000 per kg today.

The bullion metal steadied overseas amid fresh worries about the spread of virus, with European governments enforcing new lockdowns to curb the COVID-19 outbreak.

Spot gold was steady as $1,906.15 per ounce, while Comex gold traded flat today at $1,908 per ounce as investors digested the news over the dealy of coronavirus relief package in the US. Silver fell 0.9% to $24.33 per ounce.

Worldwide, there were 442 lakh confirmed cases and 11.71 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 79-lakh mark and the death toll from COVID-19 infections rose to 1.20 lakh.

Gold has gained nearly 25% so far this year as the recent spike in coronavirus cases across major economies added to the uncertainty over the global economic recovery. Although, the yellow metal traded flat today amid dwindling hopes for a U.S. stimulus package that kept investors gloomy.

As per Geojit Financial Services, gold prices are likely to be congested inside $1912-1890 levels initially and breaking any of the sides would suggest a fresh direction to the commodity for the day. For MCX Gold August, resistance is placed at 51240 and support is at 50110.

Commenting on Silver's near-term technical indicators, the brokerage said," If the support of $24 remains undisturbed, expect recovery upticks for the day. However, an unexpected drop below the same may turn prices lower but unlikely to trigger major selling pressure." For MCX Silver August futures, the resistance is at Rs 64,080 and the support is placed at Rs 59,300.

Gold price rises as coronavirus cases jump; silver at Rs 62,400

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