(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices are trading lower this Wednesday morning and early afternoon trade as the U.S Dollar Index stabilized after yesterday's fall.
However, the U.S. 10-year treasury yields were weak this Wednesday morning and early afternoon trade and capped downside.
Now the question investors have to ask is whether the downside in bond yields is short lived or another beginning for the downside momentum.
We believe that signs of U.S. economic recovery from COVID-19 could lead to another slide in bond prices and in turn keep the upside limited in gold prices.
In the meantime, prices could track key data points like nonfarm payroll and ISM non-manufacturing PMI data this week.
A pre-cursor to the jobs data will be the release of ADP employment data tonight.
Apart from that, prices could also look to cues from Fed Chairman Powell's speech this week.
Technically, LBMA spot gold could trade in range from $1715-$1740.
Domestic gold prices are trading lower this Wednesday morning and early afternoon trade tracking overseas prices.
Stronger Rupee also weighed on prices.
Technically, MCX gold April contract could trade in the range from Rs. 45540-45125.
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