Gold - June 17, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Gold prices witnessed a range bound trading session on Wednesday with international spot gold prices traded steady near $1723 for the day.

Gold futures at MCX for August traded down by Rs.367 to Rs. 47200 reflecting overnight decline in global gold prices. The rupee appreciation also pressured gold prices which was trading around 4 paisa stronger against the dollar for the day.

Gold prices witnessed correction after US data showed stronger than expected retail sales data for the month of May. However the geopolitical tensions over Korean peninsula and border standoff between India and China kept down side limited in gold prices on Wednesday. The rising virus cases may keep risk premium higher in gold prices with fear of partial lockdown in some of the nation.

We expect gold prices to trade sideways to up with MCX Gold August support at Rs. 46800, resistance at Rs. 47500.

Source : Equity Bulls

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