Gold - July 8, 2020 - Mr. Tapan Patel- Senior Analyst (Commodities), HDFC securities

Gold prices traded higher on Wednesday with international spot gold prices crossed the $1800 levels surpassing the key resistance. Gold futures at MCX for August gained by Rs.110 to Rs. 48910 in line with strong global peers and rupee depreciation.

Gold prices rose to the highest level since September 2011 amid worries over the possibility of a second wave of virus cases in the US. Investors switched some of the portion of the investment to the safe haven buying in gold as hedge against the market uncertainty. Gold prices are gaining momentum despite a recovery in equity indices over positive data, which is rare in the market correlation.

We expect gold prices to trade up with MCX Gold August support at Rs. 48600, resistance at Rs. 49200.

Source : Equity Bulls

Keywords