Gold price today: Yellow metal trades lower; likely to find support near Rs 46,800

India Gold August Futures traded lower on June 12 despite a steady trend seen in the international spot prices. Experts are of the view that the yellow metal should be able to find support above Rs 46,800 per 10 gm but the trend is likely to remain on the upside.

Experts say that rising fear of the second wave of COVID-19 cases, weak economic outlook and a selloff in equity markets will keep the interest in yellow metal alive.

On the Multi-Commodity Exchange, June gold contracts were trading higher by 0.56 percent at Rs 47,149 per 10 gram at 1000 hours. July futures for silver were trading 1.4 percent higher at Rs 47,942 per kg.

International gold almost touched $1,755 per troy ounce and silver also tested $18.34 per troy ounce during the session. At MCX, gold made a high of 47,680 and settled above crucial resistance of 47,330.

Silver also made a high of 49,600 but profit-taking in the last hours erased intraday gains and it settled around 48,500 levels.

“Investors also turned cautious amid fear of the second wave of coronavirus and bet on safe-haven assets once again. Buying is seen in gold and dollar. US dollar index spikes from the lows,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.

“We expect due to panic selling in global equities, rebound in the dollar index and fear of the second wave of coronavirus will keep both the precious metals volatile. Both the precious metals remain volatile and buy on dip strategy will work in Friday’s session.”

Jain further added that gold futures are expected to hold key support of $1,700 per troy ounce /INR 46,800 level, prices sustain above $1745 per troy ounce /47500 could extend the gains towards $1755-1762 per troy ounce / INR 47850-48000 levels.

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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

International bullion prices started lower on June 12 in Asian trade as the dollar continued to move higher, supported by safe-haven appeal for the currency amid a possible second wave of COVID-19 cases in the US.

Technically, LBMA gold spot took resistance of $1,744 levels and gave a fall up to $1,725 levels where prices can trade sideways in a range of $1,715-$1,736 levels.

MCX Gold August contract made a day high of Rs 47,680, where it was sustaining above 47,000 levels. Further, it could trade in the range of 46900-47500 levels. However, a bullish momentum will continue to push prices to the higher side.

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