Gold - May 10, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading marginally higher on Monday early afternoon trade in Asia extending gains from last week continued to be supported by weak jobs number which suggests that U.S. interest rates will remain low for some time.

The Dollar Index continued to struggle near a more than two-month low on Monday early afternoon trade in Asia and lent support.

On the economic calendar front, we have the U.S. CPI, PPI and retail sales data, which are tracked by the Fed and their releases, will be keenly awaited by investors.

Technically, LBMA Gold Spot has given a breakout with good volume activity and is heading towards its 200-DMA at $1849 levels which will act as hurdle for further upside movement. A break above will push prices to $1860. Supports are at $1828 and $1815.

Domestic gold prices are trading higher on Monday early afternoon trade, tracking overseas prices.

Technically, MCX Gold June has given a breakout above 47750 levels and further could see a bullish momentum up to 48000-48200 levels. Support is at 47500-47300 levels.

Strategy for Gold June is buying on dips near 47800 with a stoploss at 47600 and at target at 48200.

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Source : Equity Bulls

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