Gold - June 11, 2020 - HDFC Securities

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

Gold prices traded steady on Thursday with international spot gold prices kept the range bound trading near $1735 after gaining overnight.

Gold futures at MCX for August traded higher by Rs.564 to Rs. 47190 witnessed gap up opening with rally in international gold prices. The weaker rupee also supported gold prices in India which was trading around 23 paisa weaker against the dollar for the day.

Gold prices traded higher post FOMC decision as US FED kept key interest rates unchanged near zero. Gold prices rallied on safe haven buying after US FED in its economic outlook signalled slower economic recovery with GDP contracting by 6.5% in 2020. The US FED also reassured to take every possible step to support economic recovery. The fall in equity indices amid fears of a longer recession period boosted buying in gold on risk off sentiments.

We expect gold prices to trade sideways to up with MCX Gold August support at Rs. 46800, resistance at Rs. 47400.

Source : Equity Bulls

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