Gold - May 26, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded higher with COMEX spot gold prices were trading up at $1908 per ounce Wednesday. Gold June future contract at MCX were trading over half a percent up at Rs. 49111 per 10 grams by noon session.

Gold prices edged higher giving break out of the psychological resistance level of $1900 on inflation worries. The dollar index fell to lowest level since January while US 10 year treasury yields fell to 1.56% boosting buying in precious metals. The US FED accepted transitory inflation with supply bottlenecks. The fall in Bitcoin also supported buying in bullion with investors switching to safer assets.

We expect gold prices to trade up for the day with COMEX gold support at $1890 and resistance at $1920 per ounce. MCX Gold June support lies at Rs. 48900 and resistance at Rs. 49400 per 10 gram.

Source : Equity Bulls

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