Gold and silver prices fell lower on Friday despite steady rates in the international market. On Multi Commodity Exchange (MCX), gold August futures were trading with a loss of Rs 288 or 0.61 per cent at Rs 47,126 per 10 grams, while the silver July futures tumbled Rs 727 or 1.49 per cent to rule at Rs 47,912 per kg. Analysts are bullish on gold and recommend to buy the yellow metal. “Gold price in COMEX is consolidating its yesterday’s gain and the trend still remains positive. We might see some initial pullback in the gold price as equity market will recover but the overall trend remains positive on rising Covid-19 cases and loose monetary policy from the US Fed. 46300 is strong support for gold in MCX while 47800 is next resistance,” Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities, told Financial Express Online. “Buy on dips strategy should be adopted by investors until $1700 is not breached in COMEX,” Patel added. He further added saying that for intraday 46800-46700 is the ideal zone for creating any long position for expected target of 47200 while on weekly basis, expected target of 47800 still remains valid till 46300 is not taken out.
Despite weakness in Indian rupee, MCX gold has witnessed profit-booking. “The yellow metal may witness profit booking but rising USDINR may provide support to gold in intraday,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers. “For next week, investors can buy on dips, while for intraday we are bearish on the yellow metal,” Trivedi added
Globally, spot gold was flat at $1,727.24 per ounce. US gold futures fell 0.4% to $1,733.30. Gold has rallied about 19% since touching an over three-month low of $1,450.98 on March 16, according to Reuters. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.5% to 1,135.05 tonnes on Thursday. Palladium was unchanged at $1,921.22 per ounce. Among other precious metals, silver was down 0.4% to $17.64, and platinum rose 0.2% to $812.37.
Meanwhile, India recorded its highest single-day surge of 9,996 new coronavirus cases on Thursday. The total number of COVID-19 patients in the country are at 2,86,579 with a death toll at 8,102. On domestic equity front, BSE Sensex and Nifty 50 were trading with nearly 2 per cent cuts on Friday. The 30-share Sensex was down 644 points or 1.92 per cent at 32,893, while the broader Nifty 50 was ruling at 9,717, down 185 points or 1.87 per cent.