Gold prices soften amid rupee appreciation, Sensex, Nifty rally

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Published: May 23, 2019 11:36:09 AM

The gold prices softened on Thursday on the back of rupee appreciation owing to euphoria around exit poll results which predicted thumping victory for the ruling BJP party in 2019 Lok Sabha elections.

U.S. gold futures were 0.2% higher at ,278 an ounce.Gold prices soften around rupee appreciation, Sensex, Nifty rally

The gold prices softened Thursday on the back of rupee appreciation owing to euphoria around exit poll results which predicted thumping victory for the ruling BJP led NDA in 2019 Lok Sabha elections. According to market experts, the gold prices will remain under pressure in the coming days due to further expectations of rupee appreciation. Currently, while the MCX gold is trading at Rs 31,310 per 10 gram, Comex gold is trading at $1,272 per ounce. Yesterday, the gold prices ended a little higher at Rs 31,422 per 10 gram, up 0.02 per cent from the previous close. The MCX Gold prices fell for the seventh consecutive session ahead of Fed meeting’s minutes. Comex gold hovered around a crucial technical support amid a minor weakness in the investment demand.

Today, since rupee has strengthened due to expectations of NDA easily forming government once again, the yellow metal has fallen further. For intraday, 31,120 and 30,950 are supports. Comex gold is hovering around a crucial support of $1,270 (200 Days EMA). The US will release new home sales & manufacturing PMI, hence traders will pay attention to the economic release too,” Jigar Trivedi, fundamental analyst – commodity, Anand Rathi Shares and Brokers, told Financial Express online.

The yellow metal is likely to trade in the range of Rs 31,303-31,597 per 10 gram on Thursday. Gold prices steadied as the dollar retreated and equity markets fell on fresh trade fears ahead of the US Federal Reserve’s release of minutes from its last meeting. Beijing was ready to resume talks with Washington, but blamed the latter for frequently“changing its mind” on tentative deals. Fed Chair Jerome Powell reiterated his unmoved demeanour stating it was premature to ascertain the impact of trade and tariffs on monetary policy,” Kedia Advisory said in a note.

The Indian headline indices scaled fresh heights on Thursday, the day of Lok Sabha election results, when the fate of BJP would be decided which is likely to win for Lok Sabha elections 2019. While, the Sensex is trading higher by 989 points at 4,0124.40 level, while the Nifty was at 12,023.15 level, higher by 285.25 points from the previous close.

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