Gold - July 16, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded marginal down with COMEX spot gold prices traded near $1805 on Thursday. Gold prices at MCX for August contract were trading down by Rs.85 to Rs. 49074 by noon session following weak global peers.

Gold prices have kept the upper trading range above $1800 due to ongoing concerns over rising virus cases while mounted tension between US and China also kept risk premium high in the prices. The U.S. Secretary of State Mike Pompeo on Wednesday said the United States would impose visa restrictions on Chinese firms like Huawei Technologies Co Ltd that he accused of facilitating human-rights violations. The gold holdings at SPDR Gold holdings rose at 1206.89 tonnes on Wednesday.

We expect gold prices to continue to trade higher with resistance at $1813 and support at $1798. MCX Gold August has important resistance at Rs. 49200, support at Rs. 48900.

Source : Equity Bulls

Keywords