Gold - June 16, 2020 - HDFC Securities

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

Gold prices reversed losses on Tuesday with international spot gold prices traded higher near $1730 witnessing safe haven buying.

Gold futures at MCX for August traded up by Rs.334 to Rs. 47360 reflecting overnight rally in global gold prices. The rupee depreciation also supported gold prices in India which was trading around 22 paisa weaker against the dollar for the day.

Gold prices traded higher after the US fed expanded its bond buying program by announcing to purchase individual corporate bonds from the secondary market. The expansion of the Fed balance sheet will support gold prices to trade firms over the medium term with lower bond yields. Gold prices witnessed sudden buying in the noon session after South Korea reported a blast in the inter-Korean office.

We expect gold prices to trade higher with MCX Gold August support at Rs. 47200, resistance at Rs. 47800.

Source : Equity Bulls

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