Gold - May 11, 2020 - HDFC Securities

Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Gold prices continued upside with international spot gold prices held above $1700 near $1707 on Monday.

Gold futures at MCX for June was trading marginal down by by Rs. 62 to Rs. 45750 limiting upside with rupee appreciation in the noon session.

Gold prices traded positive on Monday as second wave of coronavirus infections in China, Japan and South Korea raised concerns over economic recovery. The rise in cases in China, Japan and South Korea have also alarmed the situation in nations where government has removed some lockdown restrictions.

However, with recent rise in equity markets and stable situation in China has drawed some liquidation in gold long positions. The CFTC data showed that speculative long positions in gd have declined by 12251 in previous week.

We expect prices to trade sideways to up for the day with MCX Gold June support at Rs. 45500, resistance at Rs. 46000.

Source : Equity Bulls

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