Gold - August 5, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices rallied to new record high with COMEX spot gold prices traded above $2030 on Wednesday. Gold October future contracts at MCX were trading marginally up by 1% to Rs. 55160 supported by rally in international prices.

The weaker dollar and falling bond yields continued the safe haven buying in bullion prices. The higher cost of coronavirus pandemic and uncertainty over the US aid package will support buying in bullion prices. The United States has reported more than 4.7 million coronavirus cases and over 157,000 deaths, the highest globally.

We expect gold prices to trade firm with resistance at $2055 and support at $2017. MCX Gold August has important resistance at Rs. 55700 support at Rs. 54600.

Source : Equity Bulls

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