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'Gold to struggle for rally as economies begin lifting coronavirus restrictions'

Given the lack of momentum and increasing attractiveness of equities, short-term corrections in gold cannot be ruled out.

May 01, 2020 / 12:24 IST
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Ravindra Rao

Gold, one of the few commodities to have performed well, so far, this year, is showing signs of exhaustion amid lack of fresh triggers.

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If we look at spot gold, it has moved in a narrow range (high-low gap) of about $20 in last few days as against this month's average intraday movement of $32. Spot gold has slipped below $1,700 per troy ounce level for the last two sessions but has so far managed to close above that level.

On the coronavirus front, some improvement is being reported at some hotspots. More and more countries are working towards reopening their economies. Improvement in the situation has reduced gold's appeal as a safe-haven asset but market players are still nervous, as global cases have continued to rise at a fast pace and this has kept a floor to the gold price.