Gold prices fell on Wednesday on the back of profit booking as equity markets rose due to easing lockdown restrictions and prospects of economic recovery. On MCX, gold August futures were trading down nearly Rs 203 at Rs 46,362 per 10 grams. While silver July futures gained Rs 130 at Rs 49,210 per kg. “The weak dollar, rising investment demand, disappointing manufacturing PMI data and trade war has supported bullions. The outlook is bullish in bullions, specifically gold,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers. “MCX August gold has support near 46100 – 45800. We recommend to go long on dips,” Trivedi added.
Meanwhile, the total number of coronavirus cases in India has surpassed the 2 lakh-mark with the death toll at 5,815. “Safe-haven demand may fade out as we are expecting some more profit booking in gold prices. “Traders can go for sell in gold prices around Rs 46700 to 46800 levels, with the stop loss of Rs 47100, and for the target of Rs 46000 levels,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd, told Financial Express Online. Globally, spot gold prices slipped on Wednesday as equity markets surged. Spot gold was down 0.2 per cent at $1,722.93 per ounce. US gold futures fell 0.3 per cent to $1,729.70.
The holdings at the SPDR Gold ETF has continued to go up amid rising demand for safe havens. It rose 0.1 per cent to 1,129.28 tonnes on Tuesday. Palladium rose 1.4 per cent to $1,976.30 per ounce. Among other precious metals, platinum inched up 0.1 per cent to $839.52, while silver fell 0.6 per cent to $17.98.