Gold prices eased Rs 1,220 per 10 grams from its record high level hit last week on the signs of the containment of coronavirus spread which damped the demand for the safe-haven asset, says Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers. Gold June futures were down 0.40 per cent or Rs 183 to Rs 45,552 per 10 grams. Silver May futures were trading flat at Rs 42,807 per kg on Multi Commodity Exchange (MCX). “The cases and fatalities slowed in New York, possibly the high point is a matter of the past. Moreover, the UK, Spain and Italy also reported fewer cases. Hence, sentiment for yellow metal may stay weak today,” Jigar Trivedi added.
Globally, gold prices fell to a more than one-week low on Monday, as US President Donald Trump planned to reopen the world’s largest economy battered by the coronavirus. Spot gold fell 0.3% to $1,679.95 per ounce. US gold futures slipped 0.2% to $1,695.20. Palladium rose 2.3% to $2,206.12 per ounce, platinum was steady at $775.41 and silver gained 0.6% to $15.22, according to a Reuters report. The fall in gold prices came on the back of “optimism that major economies may give some relaxation from lockdown and industrial activities may resume. The safe-haven demand may fade for the yellow metal. For an intraday perspective, we expect gold and silver may trade on a negative note,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd, said. “Gold has a strong support at 45200 – 45100 levels and resistance at 45800 to 45900 levels. Silver has support at 42500 – 42300 levels and resistance at 43400 – 43500 levels,” Anuj Gupta said.
Fears of a global recession and hopes of more quantitative easing programs from central banks continue to support the yellow metal’s short term positive outlook, says Hareesh V, Head Commodity Research at Geojit Financial Services. He also suggested that a strong dollar and optimism over top economies to restart activities after the lockdown may hit the demand for the commodity. “As long as the prices hold the support of $1640 expect recovery upticks to continue through the day,” Hareesh V said.
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