Gold - May 19, 2020 - HDFC Securities

Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Gold prices traded steady on Tuesday with international spot gold prices held the steady trading range near $1736 after witnessing decline in Monday night.

Gold futures at MCX for June traded with marginal gain of Rs. 55 to Rs. 46710 despite of stronger rupee which appreciated by 27 paisa against the dollar during the day.

Gold prices witnessed selling from Monday evening session on positive global cues on vaccine hopes. The risk on sentiments pushed equity indices higher which led to selling in gold. Gold prices pared precious gains after US company Moderna reported successful phase 1 trial for coronavirus vaccine.

However, economic growth concerns and tensions between US and China may limit downside in gold prices.

We expect prices to trade sideways to up with MCX Gold June support at Rs. 46300, resistance at Rs. 46900.

Source : Equity Bulls

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