Gold - June 2020 - HDFC Securities

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

Gold prices traded mixed on Monday with international spot gold prices kept the steady trading range near $1737.

Gold futures at MCX for August traded marginal down by Rs. 38 to Rs. 47066 with choppy global gold prices and stronger rupee which appreciated by 7 paisa against the dollar during the day.

Gold prices kept the firm trading range on mixed global cues. The strong equity indices over prospects of economic recovery with reopening of world economy kept upside limited in gold prices. The better than expected manufacturing PMI from China kept gold prices in range despite of rising tensions with US.

The US FED chairman on Friday warned of further economic slowdown if COVID-19 cases rise in US. The violent public protest in several US cities may keep risk premium higher in gold prices.

We expect gold prices to trade sideways to up with MCX Gold August support at Rs. 46800, resistance at Rs. 47400.

Source : Equity Bulls

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