7.7 C
London
Saturday, May 8, 2021

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

Must read

UK Time Newshttps://www.uktimenews.com
UK Time News is your daily dose of Latest News, Entertainment, Music, Fashion, Lifestyle, World, Cricket, Sports, Politics, Tech, Business News Website. We provide you with the Latest Breaking News Straight from the UK & all around the World on different categories.

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.

READ  World's biggest COVID-19 crisis threatens Modi's grip on India
READ  Due to unfilled appointments, Cal State LA offers walk-in vaccines to anyone 18 years of age and older

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.

READ  Part Market LIVE: Sensex, Nifty can open in green; Center allows states to borrow 75% of annual limit by third quarter

“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.

READ  HDFC Bank, Mindtree, Macrotech Developers, PVR, Future Retail among the featured stocks today
READ  HomeFirst: initiate coverage with "buy"; indicative price Rs 625

Get live stock quotes for BSE, NSE, US market and latest NAV, mutual fund portfolio, see latest IPO news, top performing IPOs , calculate your tax using the income tax calculator, know the best market winners, the best losers and the best equity funds. Like us on Facebook and follow us on Twitter.

UK Time News is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.

.

More articles

15,129FansLike
4,596FollowersFollow

Latest article