Gold - May 26, 2020 - HDFC Securities

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

Gold prices traded weak on Tuesday with international spot gold prices traded near $1726 witnessing selling from $1735.

Gold futures at MCX for June traded down by Rs. 158 to Rs. 46815 with selling in global gold prices and stronger rupee which appreciated by around 30 paisa against the dollar during the day.

Gold prices declined on Tuesday as global equity market rose on risk on sentiments lowering demand for safe assets. Gold prices traded lower on buoyed investment sentiments on vaccine hopes and lifting of state of emergency in Japan.

However, the escalation in US - China tensions and public protest in Hong Kong over New Security Law may limit downside in gold.

We expect prices to trade sideways to down with MCX Gold June support at Rs. 46400 , resistance at Rs. 47300.

Source : Equity Bulls

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