Gold - July 14, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Gold prices halted gains on Tuesday with international spot gold prices traded below $1800 witnessing correction on stronger dollar index.

Gold futures at MCX for August declined by Rs. 144 to Rs. 49004 reflecting selling in global gold prices.

Gold prices witnessed selling with recovery in dollar index. However, Gold prices kept downside limited on tensions between US and China over the disputed South China Sea after the US rejected China's claim to offshore resources in that region. The rising virus cases may keep down side limited in gold prices as fear of a second wave of virus infections may re-impose lockdown measures in the US.

We expect gold prices to trade sideways to up with MCX Gold August support at Rs.48700, resistance at Rs. 49200.

Source : Equity Bulls

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