Gold - May 28, 2020 - HDFC Securities

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

Gold prices traded higher on Thursday with international spot gold prices witnessed recovery to $1721 on safe haven buying.

Gold futures at MCX for June gained by Rs. 98 to Rs. 46805 with buying in global gold prices and weaker rupee which depreciated by 3 paisa against the dollar during the day.

Gold pared early gains on Thursday on heightened tensions between US and China. The Chinese parliament approved the National Security Law today for Hong Kong and Macau which can escalate the public protest in Hong Kong. The US certified that Hong Kong is no longer politically autonomous from China.

The US president is expected to respond shorty on China's New National Security Law. In return, China has warned of counter retaliation over any new sanctions or measures.

We expect gold prices to trade sideways to up with MCX Gold June support at Rs. 46400, resistance at Rs. 47100.

Source : Equity Bulls

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