Gold price today: Yellow metal steady on strong equities, likely to hold at Rs 46,600

India Gold June futures were trading with a positive bias on Tuesday, but experts feel that the yellow metal is likely to remain volatile, and hold on to its crucial support at Rs 46,600 per 10 gm.

On MCX, June gold contracts were trading higher by 0.2 percent at Rs 47,105 per 10 gram at 0920 hours. Silver futures were trading 1.4 percent higher at Rs 48,943 per kg.

International spot Gold prices traded little changed on Tuesday as gains in equities on optimism over a reopening global economy offset support from a softer dollar and lingering tensions over Hong Kong and Venezuela, said a Reuters report.

Gold and silver opened gap down last week during evening trading session at MCX, but both the precious metals recovered from their lows after downbeat Germany GDP data and mounting tensions between the US and China.

“Gold and silver hold crucial support in the international market amid fear of global recession due to long lockdown of more than two months in most of the countries deeply hurt global economies,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd, told Moneycontrol.

“We expect both the precious metals remain volatile today and expected to hold support levels of $1722 per troy ounce/ INR 46600 and $17.55 per troy ounce /INR 47700 respectively,” he said.

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Trading Strategy

Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities

International bullion prices have started flat to higher this Monday morning in Asian trade supported by safe-haven appeal amid rising tensions between U.S. and China.

However equities have started with gains this Tuesday morning supported by optimism surrounding opening up of economies and could keep gains limited.

LBMA GOLD Spot could trade in a range of $1715-1750 for the session.

MCX Gold June contract could trade in a range of Rs.46500-47300 for the session.

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

COMEX gold trades little changed near $1735/oz after hitting a session low of $1718/oz. Gold trades mixed as support from global growth worries, US-China tensions, hopes of additional stimulus, and ETF flows are countered by relative stability in equity markets and weaker Chinese and Indian demand.

Gold is struggling to build on its upward momentum due to stable equity markets however we expect the price to hold above $1700/oz amid global growth worries and geopolitical issues.

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