Gold - June 7, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading in the red on Monday afternoon trade in Asia tracking gains of the U.S. Dollar and benchmark treasury yields.

However, downside remained capped as investors' concerns eased that the U.S. Federal Reserve would tighten its current dovish monetary policy.

Meanwhile, downside also remained capped as U.S. Treasury Secretary Janet Yellen said that U.S. President Joe Biden's $4 trillion spending plan would be good for the U.S. even if it results in inflation that persists into 2022 and interest rate hikes.

Investors now await the European Central Bank's policy decision, due to be handed down on Thursday. The Fed is also scheduled to meet from Jun. 15 to 16.

Technically, LBMA Gold Spot could trade on Bearish note where support is at $1880-$1866 levels. Resistance is at $1893-$1900 levels.

Domestic gold prices are trading in the red on Monday afternoon trade, tracking overseas prices and weak demand.

Technically, MCX Gold August below 49000 could see a downside pressure up to 48760-48600 levels. Resistance is at 48900-49150 levels.

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Source : Equity Bulls

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