Gold - June 9, 2020 - HDFC Securities

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

Gold prices continued upside on Tuesday with international spot gold prices recovered to $1706 witnessing recovery for the second day.

Gold futures at MCX for August traded higher by Rs. 248 to Rs. 46349 with strong international gold prices with rupee depreciation as spot rupee was trading around 7 paisa weaker for the day.

Gold imports from India fell by 99% for the second month in a row as gold imports fell to 4.3 tonnes in the month of May compared to 105.8 a year earlier. The nationwide lockdown and restrictions has lowered spot gold demand impacting the import numbers.

Gold prices traded higher despite buying in equities as investors turn cautious ahead of the US FOMC meet. The market is expecting further announcement of stimulus measures in support of the US economic recovery.

We expect gold prices to trade sideways to up with MCX Gold August support at Rs. 45900, resistance at Rs. 46700.

Source : Equity Bulls

Keywords