Gold prices today edge higher on safe-haven demand

Gold prices opened higher on Monday as concern over economic fallout from rising coronavirus infections boosted the demand for safe-haven metal.

MCX Gold was up 0.19 per cent at Rs 53,564 per 10 gram in the early trade. White metal silver on the MCX was up 1.03 per cent at 65,656 per 1 kg.

Sriram Iyer, Senior Research Analyst, Reliance Securities, said, “Gold may remain volatile incoming sessions. Resistance holds at Rs 53,750-54,050 level and support is at Rs 53,100-52,850 levels. On the other hand, silver could trade in a range of Rs 63,000-65,500 levels in the coming session.”




In the international markets, US Gold futures rose 0.27 per cent to $1,991.20 per ounce.

An analysis by Reuters showed that gold may retreat into a range of $1,943-$1,954 per ounce, as it failed again to break a resistance at $1,982.

The resistance is identified as the 376.4 per cent level of an upward wave C from $1,704. Gold failed thrice to overcome this barrier. The chance of a break above this level becomes slim.

The consolidation from the July 28 high of $1,980.57 has taken the shape of a triangle, which looks like a top pattern, as indicated by the bearish divergence on the hourly RSI.

Soaring Covid-19 cases and simmering US-China tensions have dented hopes for a swift economic recovery, driving inflows into safe-haven assets such as gold, which climbed 30 per cent so far this year.