Gold price today: Yellow trade above 46,100; could face resistance around 46,200

India Gold June Futures rose on May 14 tracking positive trend seen in the international spot prices as US stimulus talks and Federal Reserve Chair Jerome Powell's downbeat economic assessments supported the safe-haven metal.

Asian equities were set to slump after Powell warned of a "significantly worse" US recession than any downturn since World War II because of coronavirus pandemic fallout, said a Reuters report.

Gold tends to benefit from widespread stimulus measures as it is often seen as a hedge against inflation and currency debasement, said the report.

On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.27 percent at Rs 46,104 per 10 gram at 09:20 hours. Silver futures were trading 0.2 percent higher at Rs 43,078 per kg.

Experts are of the view that the yellow metal could face some resistance around 46,200 levels. The trend is likely to remain bullish as long as Gold holds above Rs 46,050 per 10 gm.

Gold and silver showed a mixed trend on Wednesday. At MCX, Gold tested Rs 46,000 levels again and gained around 1 percent while Silver settled almost flat but held onto its crucial support of 42,800 levels.

“After the US Fed chairman speech, the pressure was seen in global equities and Gold rebound again. Downbeat US PPI and core PPI numbers also supported gold prices. At MCX, the rupee also showed some weakness against the US dollar and supported prices of both the precious metals,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.

“At MCX, Gold is having immediate support at 45800 and the crucial support is placed at 45500 levels and is expected to hold. If prices sustain above 46050 levels then the rally could extend towards 46300-46500 levels,” he said.

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Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities

Precious metals ended higher after US Federal Reserve Chairman Jerome Powell pledged more stimulus measures if required to support the economic damage by the COVID-19 pandemic.

International bullion prices have started flat this Thursday morning in Asian trade.

Technically, LBMA GOLD Spot traded on positive note breakout above $1,723 will create a path for upside momentum where else it can retreat from resistance and could trade in $1,695-$1,718 levels.

MCX Gold June contract holds a resistance zone at 46,100-46,200 levels from where it can give a correction upto 45,300 levels.

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

COMEX gold trades moderately higher near $1,722/oz after a 0.6% gain yesterday. Gold trades higher supported by choppiness in the equity market and US dollar index.

The risk sentiment remains weak amid disappointing economic data, downbeat growth outlook, US-China tensions, increasing virus cases worldwide, fear of the second wave of infection in previous hotspots like China, and warnings against the rushed reopening of economies.

Gold may continue to trade firm unless risk appetite improves however it is still bound in the $1,680-1,750/oz range.

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