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Gold prices are higher, trading above Rs 47,000; check MCX gold support, resistance levels

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Physical demand in India has also been hit after severe second wave of Covid, with many states imposing restrictions and lockdown

Gold prices traded higher in Indian markets on Wednesday, even as international rates were stable. On the Multi Commodity Exchange, June gold futures were trading Rs 139 or 0.30 percent at Rs 47,010 per 10 grams, against the previous close of Rs 46,871. July silver stood at Rs 70,045 per kg, up from Rs 396 or 0.57 percent. In the previous session, silver futures ended at Rs 69,649 per kg. The general risk aversion due to the covid crisis and the corresponding demand for safe haven is not dropping it below 46,500, an analyst said. “But the next catalyst is the US non-farm payroll report due out this Friday. Bullish data may give DXY a bit of a rebound, pushing gold prices lower. A breakout of 46500, may push MCX prices towards 45000 and then 44500, while 48450 will act as crucial resistance, ”Rahul Gupta, head of currency research at Emkay Global Financial Services, told UK Time News Online.

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In the previous session, both gold and silver fell sharply as the market was taken by surprise after Treasury Secretary Janet Yellen admitted on Tuesday that interest rates may have to rise to contain the inflation. “Interest rates may need to increase somewhat to ensure our economy does not overheat, even though the additional spending is relatively small relative to the size of the economy,” she said. . These comments came after 48 hours where she played down growing inflationary pressure, creating confusion. The comments prompted the US dollar to soar as precious metals fell sharply.

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“As the economic recovery in the United States accelerates, the market is now realizing that ultra-loose monetary policy may not stay the same for the foreseeable future and that rising interest rates may occur. next year, ”Bhavik Patel, senior technical research analyst, Tradebulls Securities told UK Time News Online. Physical demand in India has also been hit after the second severe wave of Covid, with many states imposing restrictions and a lockdown. The premium for physical gold has eroded and is now trading at a discount of $ 2. Gold also has headwinds in the form of ETF exits. “We think gold has to break $ 1,800 to gain traction. In MCX, we remain bullish until 46450 is not retired. The next trigger for gold would be Friday’s US non-farm payroll data which will give an indication of the strength of the recovering US economy, ”Patel said.

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