Halting a three-day rally, gold prices in India eased from record high level tracking a fall in global rates. In the previous session gold prices on MCX hit an all-time high of Rs 45,724 per 10 grams. Gold June futures were trading at Rs 44,900 per 10 grams, down Rs 181 or 0.40 per cent while silver May futures were ruling at Rs 42,879 per kg, down Rs 615 or 1.41 per cent on MCX. Spot gold market in India remained closed amid a 21-day nationwide lockdown to contain the spread of coronavirus. “On the back of expectation of increasing demand of gold in the ETF and in the futures market due to recession in the world, central banks also announced a program to boost lending in the small businesses. On the other hand, Japan pledged to roll out an unprecedented economic stimulus package. We expect the gold price may rally further,” Anuj Gupta, Deputy VP – Research, Angel Broking Ltd, told Financial Express Online.
“For the intraday traders can buy gold at 44600, with a stop loss of 44200 and target of Rs 45,500. In the comex gold may test $1680 to $1720 per ounce levels soon,” Anuj Gupta added. In the previous session, gold prices in global markets hit a fresh one-month high. Spot gold slipped 0.2 per cent to $1,644.99 per ounce. Palladium rose 0.9 per cent to $2,193.99 per ounce, while platinum gained 0.27 per cent to $735.78. Silver slipped 0.2% to $14.98 an ounce.
Analysts believe the rally in gold prices will continue. “Gold will continue with a bullish outlook as large-scale quantitative easing programs from various central banks are likely to boost prices. Investor demand for safe havens amid ongoing fears of the global health crisis have lifted the demand of the commodity,” Hareesh V, Head Commodity research at Geojit Financial Services, said.