Gold trades flat on Monday after minor profit booking in opening session

Gold prices on MCX were trading a tad lower on Monday, after witnessing a minor profit booking in the opening session. “The yellow metal had risen by more than 300 points on last Friday, witnessed a minor profit booking in the opening session. The dollar rebounded on strong economic data from the US. Due to Martin Luther King jr. Day, the US will observe a holiday today,” Jigar Trivedi, Research analyst- Commodities Fundamental, Anand Rathi Shares and Stock Brokers said. At 10.35 AM, the gold February futures were trading flat at Rs 39,945 per 10 grams on MCX, while silver futures were ruling at Rs 46,788 per Kg, up Rs 32.

“But safe-haven demand got dented since last Thursday as the intensity of both geopolitical tensions and trade war concerns have diminished. MCX gold to stay in a tight range from 39850 to 40000,” Jigar Trivedi said.

The domestic equity benchmarks Sensex and Nifty were trading around half a per cent lower after hitting fresh record highs on Monday. S&P BSE Sensex slipped 209 points to trade at 41,736.09 points while the NSE’s Nifty50 index was ruling at 12,292 points, down 0.48 per cent or 59 points.

Spot gold stood at $1,557.75 per ounce, having hit a seven-year top earlier this month of $1,610.90 at the height of Iran-U.S. tensions. The concerns about a cut in supply from Libya sent oil prices higher. Brent crude futures rose 76 cents to $65.61 a barrel, while U.S. crude jumped 61 cents to $59.15. The West Texas Intermediate contract was up by 58 cents, or 1 per cent, at $59.12 a barrel, after rising to $59.73, the highest since January 10, according to the Reuters report.

Courtesy: Financial Express