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Last Updated : May 18, 2020 09:55 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal gains on US-China worries, weak equity markets

MCX gold could test next resistance levels of 47800-48100 in the coming days, 46920-46600 act as major support levels.

Representative image
Representative image

India Gold June Futures rose on May 18 following positive trend seen in internal spot price which rose to its highest level since October 2012 as worries regarding the souring US-China relations and bleak U.S. economic data underpinned the safe-haven metal.

The U.S.-China "Phase 1" trade deal reached in January is not falling apart and the two countries are still working to implement it, the White House's top economic adviser said on Friday, but President Donald Trump added that he was not "thrilled" with the agreement, said a Reuters report.

On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.73 percent at Rs 47,725 per 10 gram at 09:20 hours. Silver futures were trading 3 percent higher at Rs 48,138 per kg.

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Gold and silver skyrocketed last week. Silver prices outperformed gold after a long time. The yellow metal rose around 2.50 percent while silver gained more than 8 percent in the international markets.

At MCX, Gold gained around 3.40 percent while silver gained around 7.90 percent last week. After a downbeat US jobless claims, PPI, and Core PPI data, profit-taking is seen in the global equity markets.

“Rising conflict between US and China and US President Donald Trump's strong push on negative interest rates environment trigger safe-haven buying in precious metals. Fear is also rising for the second wave of coronavirus despite easing lockdown restrictions in many countries support bullion prices,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.

“We expect gold prices remain firm and could test next resistance of $1772-1788 levels in coming days, $1745-1733 act as major support at Comex division,” he said.

Jain further added that at MCX gold could test next resistance levels of 47800-48100 in the coming days, 46920-46600 act as major support levels.

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Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities

International bullion prices have started with a gap up trade this Monday morning in Asian trade supported by weak economic data and rising tensions between the U.S. and China.

Investment demand, unprecedented QE, and low-interest rates could continue to support prices.

LBMA GOLD Spot has given a breakout above $1750 which signifies a bullish strength in the counter. $1723 level should hold support to continue this rally upto $1795 levels.

MCX Gold June contract close above previous highs with higher volume activity suggesting prices could witness further upside movement upto 47600-47800 levels. 47000 levels should hold support.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades higher by 0.98% near $1770/oz after a 0.9% gain in the previous session. Gold is supported by choppy US dollar, global growth worries, US-China tensions, increased expectations of additional stimulus measures, and continuing ETF inflows.

After days of the range-bound movement in the $1680-1750/oz, gold has edged up and closed above $1750/oz has led to extended gains. The momentum may continue until we see significant improvement in risk sentiment.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on May 18, 2020 09:55 am
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