Gold - May 5, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded lower with COMEX spot gold prices were trading at $1776 per ounce on Wednesday. Gold June future contract at MCX were trading marginal down at Rs. 46867 per 10 grams by noon session.

Gold prices traded weak on Wednesday following cues from the comments from US Treasury Secretary Jennet Yellen over possibility of rate hike. Ms. Yellen said that interest rate hikes might be needed to stop the economy overheating. However, she clarified that she saw no signs of inflation and was not predicting the U.S. Federal Reserve's move on rates. Gold prices traded under pressure over stronger dollar and rise in US bond yields.

We expect gold prices to trade sideways to down for the day with COMEX gold support at $1760 and resistance at $1800 per ounce. MCX Gold June support lies at Rs. 46500 and resistance at Rs. 47200 per 10 gram.

Source : Equity Bulls

Keywords