Gold price today: Yellow metal falls as virus cubs ease; buy for a target of 46K

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India Gold June futures fell on May 6 tracking muted trend seen in the international spot prices as equities rose on upbeat risk sentiment stemming from the gradual reopening of many economies.

Italy and the United States were among several countries to tentatively ease lockdowns earlier this week, said a Reuters report. The U.S. economy could start to recover in the second half of the year.

On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 0.11 percent at Rs 45,700per 10 gram at 09:20 hours. Silver futures were trading 0.5 percent higher at Rs 42,115 per kg.

Experts are of the view that weakness in the rupee is likely to support the prices of both the precious metals in the domestic market. Investors can look at buying Gold on dips for a target of Rs 46,000 per 10 gm.

“International bullion was trading flat this Wednesday morning in Asian trade as an unprecedented QE and fiscal stimulus by most Central Banks to ease the economic hardships faced from the COVID-19 pandemic offset improved risk sentiment supported by easing restrictions and lockdowns,” Sriram Iyer, Senior Research Analyst from Reliance Securities told Moneycontrol.

“MCX Gold June picked up a rally in last hour of a session gearing again a bullish momentum. 45950-46000 will act as resistance & 45400 will hold support,” he said.

Iyer further added that the strategy for the day will be buy for the Gold June contract in the range of 45600-45620 with a Stop loss at 45400 & Target at 46000.

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Expert: Manoj Jain, an independent market expert

Gold future test $1715 per troy ounce while silver future crossed $15 per troy ounce at the Comex division on Tuesday. At MCX, Gold after testing lows of 45311 rebound to its resistance level of 45770. Silver also rebound from their lows of 40951 and made a high of 41950.

Weakness in rupee supports the prices of both precious metals in the domestic market. However, gains in the US equity market and rebound in dollar index restrict further gains in both the precious metals.

We expect both the precious metals remain volatile gold is expected to hold the support of $1692 per troy ounce/ INR 45300 while $1722/INR 45920 acts as major resistance. Either side breakout of the range will give further direction to the prices.

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