Gold prices rose in India on May 29, tracking positive trend in the international spot prices as the US-China rift deepened over Beijing's move to impose a security law on Hong Kong.
On the Multi Commodity Exchange, June gold contracts were trading higher by 0.3 percent at Rs 46,552 per 10 gram at 0920 hours. Silver futures were trading 0.2 percent higher at Rs 48,693 per kg.
Experts are of the view that the yellow metal is likely to remain volatile but as long as it sustains above 46,300, the bulls should remain in control.
The US-China tensions will be closed watch. Beijing has approved a decision to go forward with national security legislation for Hong Kong, which could erode the city's freedom and jeopardise its role as a financial hub, a Reuters report said.
It was another rollercoaster day for both the precious metals on May 28, but some profit-taking is seen during the mid-day sessions due to gains in global equity markets.
“Stimulus announced by Japan and the EU support global equities. But, correction in the dollar index, US-China tensions and stable US unemployment claims support prices of both the precious metals at lower levels during the evening session,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd, told Moneycontrol.
“Due to the weekend session, we expect volatility in both the precious metals but will continue to get support at lower levels. If gold prices sustain above 46330, then it could test 46550-46700 levels again. Buy-on-dip strategy will work for both the precious metals in today's session,” he said.
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Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities
Gold and silver recovered from two-week lows to end with gains on May 28 amid rising tensions between the US and China and a weaker dollar.
Prices could trade flat to positive note as investors await the press conference of President Donald Trump today, where he may announce US’s response to the Chinese parliament's advancement of a national security legislation for Hong Kong.
Any fresh sanctions would push prices higher but the re-opening of several economies could keep a check on gains.
Technically, LBMA gold spot retreated from a resistance zone near $1,728 levels. However, prices did find support at intraday support of $1,712. So, the range for the session will $1,712-1,729. Either side breaks will provide fresh levels.
MCX Gold June contract turns bearish from a resistance level of Rs 46,800 levels. However, only a breakdown below 46,300 will take the price to Rs 45,700. So the range for the day will RS 46300-46800.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was trading higher near $1,720 after a 0.2% gain on May 28. Gold was trading higher amid safe-haven buying as market players waited for US response to China’s move on a Hong Kong security bill.
Disappointing US economic data and ETF inflows also lent support to the price. Gold may continue to witness choppy trade as the support from US-China tensions was being countered by hopes of a global economic recovery. However, general bias may be on the upside unless equity markets resume their upside momentum.Disclaimer
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