MCX gold futures rose 0.12 percent to Rs 50,050 per 10 grams. Gold prices are below recent highs of Rs 56,379. Silver futures for December delivery were trading 0.44 percent higher at Rs 61,783 per kg.
SMC Global said gold has support at Rs 49,700 and resistance near Rs 50,200. He believes silver can test Rs 60,800 and face resistance near Rs 61,900.
New claims for unemployment benefits in the United States climbed to 7.42,000 last week, the US Department of Labor said on Thursday, reversing their recent decline amid soaring Covid-19 cases. The data also showed that 320,237 people applied for benefits under a special program for workers who are not normally eligible, while the level of claims reported during the week ended Nov. 7 has been revised slightly upwards, according to the agencies.
Agencies reported that the number of people hospitalized with Covid-19 in the United States has jumped almost 50% in the past 14 days, straining the country’s health system and forcing states to impose new restrictions to stem the alarming spread of the coronavirus.
At the same time, US Treasury Secretary Steven Mnuchin has asked the Fed to return the money allocated under the March Pandemic Relief Act for emergency loans to businesses, organizations for the purpose of nonprofit and local governments, marking the end of most crisis response programs on December 31. All these developments have reinforced the appeal of the safe haven of bullion.
Globally, gold prices have fallen, weighed down by uncertainty surrounding more US stimulus. Spot gold fell 0.2% to $ 1,863.21 an ounce and was heading for the second week of decline.
US gold futures were flat at $ 1,862.60.