India Gold June Futures fell in trade on May 28 despite the positive trend seen in the international spot prices which rose as tensions between the United States and China over a Hong Kong security law escalated.
U.S. Secretary of State Mike Pompeo said Hong Kong no longer qualifies for its special status under the U.S. law, dealing a blow to its status as a financial hub, said a Reuters report.
On MCX, June gold contracts were trading lower by 0.2 percent at Rs 46,426 per 10 gram at 0920 hours. Silver futures were trading 0.08 percent lower at Rs 48,350 per kg.
Experts are of the view that both Gold and Silver are likely to remain volatile but as long as the yellow metal trades above 46300, the bias remains to be on the upside. The crucial support is placed at Rs 45,900 per 10 gm.
Gold and silver opened on a weaker note on Wednesday and tested crucial support levels during the mid-session. Gold slipped below the psychological level of $1700 per troy ounce but hold key support of $1692.
“Correction in the dollar index, no-deal Brexit headlines, and US-CHINA tensions support both the precious metals and it's recovered from their lows in the late evening session. At MCX after testing the low of 45775 gold made a high of 46570 and settled above 46400 levels,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd, told Moneycontrol.
“We expect both precious metals remain volatile on Thursday ahead of US unemployment claims, pending home sales and Core durable goods orders data. Gold is expected to be traded in the range of $1692/INR 45900 to $1728/INR 46770 range,” he said.
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Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities
Gold and silver tumbled on Wednesday as the easing of coronavirus lockdown restrictions around the world fed optimism that the global economy could rebound.
However, gold and silver rebounded from lows of the session amid rising tensions between the U.S. and China and a weaker dollar.
Looking ahead, prices could remain range-bound as escalating tensions between the U.S. and China offset losses from the optimism of reopening of global economies.
Technically, LBMA GOLD Spot has bounced back from $1693 levels forming a Bullish Hammer Candlestick indicating some sign of Bullish reversal. Prices are intact in a range of $1690-$1720. However, a breakout above $1720 is awaited for further upside movement.
MCX Gold June contract has bounced back after taking the support of trend line near 45775 levels indicating bulls are active around these levels. Therefore to continue bullish momentum prices should sustain above 46300 levels.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades mixed near $1710/oz after a 0.3% gain yesterday. Gold trades mixed as support from US-China tensions, additional stimulus measures, a weaker US dollar, and ETF inflows is countered by gains in the equity market.
Gold has bounced back after taking support near $1680/oz level and amid increased US-China tensions but stable equity markets has restricted upside.
Mixed factors may keep price choppy but general bias may be on the upside owing to US-China tensions and global growth concerns. Level to watch for $1724 and $1688/oz.Disclaimer
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