Spot Gold prices continued to gain and closed at $1229/oz on Wednesday. The yellow metal prices touched a high of $1232/oz yesterday. However, on the MCX platform, gains in gold prices were restricted to around 0.1%, with the August October contract closing at Rs 18,673, up by Rs 30. Gold prices on the Indian bourses were capped mainly on the back of appreciation in the India Rupee. Spot Rupee closed at 46.56 against the dollar on Wednesday as against the previous close of 46.64.
Gold prices will continue to trade with a positive bias today as uncertain financial markets would continue to drive demand for the yellow metal. Moreover, increasing investment demand from the global investors coupled with expectations of increase in physical buying in India will also boost prices. India is the world’s largest consumer of the yellow metal. The upcoming festival season in India leads to higher demand for gold from the Indian investors.
On intraday basis, Spot Gold prices have immediate support at $1220/$1211 whereas resistance is seen at $1235/$1242. Spot Silver prices shall find support at $18.34/$18.10 whereas resistance is seen at $18.55/$18.77 levels.
