Gold prices faded in Friday’s session on the back of hopes of economic recovery, which pushed investors away from safe-haven assets. On MCX, gold August futures slipped Rs 371 or 0.79 per cent to Rs 46,325 per 10 grams. While silver July futures were ruling at Rs 48,459 per kg, down Rs 352 or 0.72 per cent on Friday. Gold prices have climbed off nearly 3.5 per cent from its record high of Rs 47,929 per 10 grams. “We are expecting some profit booking in gold prices as safe-haven demand faded out. On the weekly perspective, the chance of profit booking could be seen in gold prices,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd. “For intraday traders can go for sell in gold at Rs 46700 to 46800 levels, with the stop loss of 47100, for the target of 46000 levels,” Gupta added.
Globally, gold prices have fallen as the dollar index dropped over 1.5 per cent this week. However, there are hopes that trade tensions and the second wave of coronavirus may provide some support to the yellow metal in the coming days. Spot gold was down 0.2% at $1,706.91 per ounce. US gold futures slid 0.7% to $1,714.50. In other metals, palladium rose 0.3% to $1,938.99 per ounce, and platinum climbed 0.2% to $838.37. Silver was down 0.4% to $17.66 and was set for its first weekly decline in five.
In the previous session, gold prices surged Rs 700 per 10 grams on MCX.”US Dollar index is trading at 2.5 months low and down for eight straight trading sessions yet gold prices are not getting momentum on the upside because of money flow from safe assets like US dollar and gold to risky assets like equity. After briefly touching $1700, gold has bounced back but is vulnerable near $1745,” said Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities. For the intraday trade, Patel says yellow metal is expected to test its yesterday’s resistance around 46,700 on MCX and any upside momentum may only come above that level.