Gold prices in India traded with robust gains on the Multi Commodity Exchange (MCX) Monday following a positive momentum in the international spot prices after the US President Donald Trump signed the coronavirus relief aid bill. Silver prices also jumped 3 percent.

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At 11:30 am, gold futures for February delivery rose 0.77 percent to Rs 50,460 per 10 grams as against the previous close of Rs 50,073 and opening price of Rs 50,200 on the MCX. Silver futures traded 2.80 percent higher at Rs 69,400 per kg. The prices opened at Rs 69,000 as compared to the previous close of Rs 67,509 per kg.

“The gold prices gained as sentiment improved after the United States passed stimulus package. A weak dollar index and short-covering also supported the yellow metal prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.

US President Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a partial federal government, a Reuters report said.

International gold prices jumped 1 percet as investors cheered news that US President Donald Trump signed into law a long-awaited pandemic aid bill, with a weaker dollar lending further support.

Spot gold was up 1 percent at $1,894.44 per ounce, after hitting a one-week high of $1,900.04 earlier in the day. US gold futures gained 0.9 percent to $1,899.10.

The dollar was down 0.2 percent against rivals, lifting bullion's appeal for other currency holders.

Experts believe that the gold price may remain volatile but trade positively going head. The precious metal prices have beached the important resistance levels of $1,900 per ounce.

Investors are now keeping a close eye on a US House of Representatives vote on Monday to increase coronavirus relief checks to individuals from $600 to $2,000, with Trump saying the Senate "will start the process" to approve higher payments.

“On MCX, gold may face resistance at Rs 50,850 level while support is seen at Rs 50,180 level. Silver may face resistance at Rs 70,800 level and support at Rs 68,600 level,” Kedia said.

Inflations risk and a low interest rate environment has kept gold prices elevated in 2020 as it is considered as a hedge. Increasing number of infected cases and concerns over the new strain of the COVID-19 virus detected in UK dampened the global economic outlook.

“As for today, traders can buy in gold at Rs 50,300 levels with the stop loss of Rs 50,000 levels for the target of Rs 51,000 levels. They can also buy silver at Rs 69,000 levels, with the stop loss of Rs 66,800 levels and for the target of Rs 70,500 levels,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking.

Gupta expects gold may test $1,920 levels and silver may test $28 levels soon.

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First Published:Dec 28, 2020 11:39 AM IST