Gold - May 22, 2020 - HDFC Securities

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

Gold prices traded higher on Friday with international spot gold prices rallied to $1738 resuming uptrend.

Gold futures at MCX for June traded higher to Rs. 47040, gaining Rs. 652 supported by rally in global gold prices and weaker rupee which depreciated by around 36 paisa against the dollar during the day.

Gold prices continued upside on rising US - China trade tensions and worries over global economic recovery sighting support at $1720. China is planning to pass new national security law for two sepcial administrative states that is Hong Kong and Macau which has drawn critisism from US and domestic protest from Hongkong. The escalation in tensions between US and China may support gold prices to trade higher fetching on safe haven demand.

Gold prices traded higher on Friday after China failed to set its annual economic growth forecast.

We expect prices to trade up with MCX Gold June support at Rs. 46500, resistance at Rs. 47500.

Source : Equity Bulls

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