Gold price today: Yellow metal slips on buoyant equities; support seen at 46,800
India Gold June Futures slipped on May 21 tracking weak trend seen in international spot prices as equities gained on hopes for a swift recovery from the coronavirus-induced economic slump.
Asian shares were poised to open higher after global equities and crude prices rallied overnight on hopes of a rapid economic recovery and government support, said a Reuters report.
Global coronavirus cases surpassed 5 million on Wednesday, with Latin America overtaking the United States and Europe in the past week to report the largest portion of new daily cases globally, it said.
On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 0.44 percent at Rs 46,925 per 10 gram at 09:20 hours. Silver futures were trading 1.5 percent lower at Rs 48,300 per kg.
Gold and silver settled slightly positive in the international market on Wednesday. Gold future settled above $1,750 per troy ounce and silver also settled above $18 per troy ounce.
At MCX, Gold settled above 47,100 and silver also settled above 49,000 levels with positive gains. Experts are of the view that both gold and silver are likely to remain volatile. The index slipped below its crucial level of 47,300, and the next support for Gold is placed at Rs 46,800 per 10 gm.
“EIA weekly crude oil inventory data and European consumer confidence data are suggesting that risk appetite of global investors are on track and investors also sold dollars and returned to riskier assets,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“However, correction in dollar index support prices of both the precious metals. In FOMC minutes released late-night US Federal Reserve is still working on derailed plan to bring the economy back on the track and assured to take all possible measures. But, no discussion on negative interest rates environment,” he said.
Jain further added that if gold future sustains above $1,755 per troy ounce/Rs 47,330, then the rally could extend towards $1,764-1,772 per troy ounce /47,500-47,770 levels, else it will test its support level of $1,745-1,733 per troy ounce /Rs 46,920-46,800 levels again.
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Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities
International precious metals extended gains on Wednesday amid extensive stimulus measures and uncertainty over a possible coronavirus vaccine.
Weak US Dollar and further stimulus promise from the Fed also lent support.
However, prices have started lower this Thursday morning as risk appetite in broader financial markets improved as several countries plan to reopen after a prolonged lockdown due to the coronavirus pandemic and hopes for a swift global economic recovery.
LBMA Gold Spot could trade in a range of $1,725-1,765 for the session.
MCX Gold June contract could trade in a range of Rs 46,770-47,400 for the session.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX Gold trades marginally lower near $1,745/oz after a 0.4 percent gain yesterday. Stability in equity markets and ETF outflows are weighing on the gold price. However, supporting price is weaker economic data, US-China tensions, hopes of additional stimulus measures and doubts about vaccine development.
Gold may witness choppy trade as global risk factors and hopes of stimulus measures may continue to support while resilience in equity markets may limit upside however general bias remains on the upside.
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