Gold costs snapped the 5-day losing streak on Thursday following the US Federal Reserve decided to preserve the interest prices unchanged close to zero. MCX gold June futures have been trading Rs 163 or .35 per cent larger at Rs 47,256 per 10 gram, as against the earlier close of Rs 47,093. MCX silver June futures also surged Rs 735 or 1.08 per cent to Rs 69,788 per kg. Silver futures closed at Rs 69,043 per kg in the earlier session. Globally, gold costs rose on Thursday bolstered by the US Federal Reserve’s pledge to retain an simple monetary policy to help financial recovery, when a weaker dollar offered additional assistance. Spot gold was up .2 per cent at $1,784.94 per ounce, getting dipped to $1,762 in the earlier session, its lowest because April 16, according to Reuters. US gold futures rose .6 per cent to $1,784.50 per ounce. The dollar index edged .1 per cent reduced against its rivals, boosting gold’s appeal for other currency holders.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades about .8% larger close to $1788/oz following a .3% decline yesterday. Gold has edged up as the US dollar index slumped to 1-month low on back of Fed’s selection to retain its accommodative stance regardless of enhancing outlook for the US economy. Also supporting gold is hopes of further stimulus measures by the Biden administration. However, weighing on cost is weaker investor acquiring and issues about Indian demand. Gold may possibly stay choppy reflecting the trend in the US dollar as industry players counter Fed’s dovish stance against enhancing financial outlook.
Hareesh V, Research Head Commodities at Geojit Financial Services
Gold gained momentum following the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns more than the financial effect of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity industry and indicators of financial recovery in the US and China may possibly dent important gains in the commodity. Prices will continue with mild positive bias as extended as $1760 hold the downside. Anyhow, important rallies are anticipated only if it breaks the next upside obstacle of $1820. A close under $1720 is a sign of instant trend reversal.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver costs rebounded from session lows and closed up on the session on Wednesday as the dollar dropped in the wake of the Fed selection. US Treasury yields also eased following rallying initially and lent assistance. International spot gold and silver costs have began larger this Thursday morning in Asian trade tracking the easing of the U.S. Treasury yields and a weaker dollar following the Fed meeting. Technically, MCX Gold June could trade above 47100 levels indicating a bullish momentum up to 47300-47500 levels. Support is at 47050-46900 levels. MCX Silver could see a sideways momentum inside the narrow variety of 67400-68200 levels.
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