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gold price increase today as corona virus cases spike, analysts see buying opportunity in gold

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Gold prices continued to march North on Wednesday as the coronavirus cases in India and elsewhere kept surging rapidly which pushed investors to rush to safe-haven. In India, the total number of coronavirus cases has surpassed 1.06 lakh mark with a death tally over 3,000. On MCX, gold June futures were trading Rs 190 or 0.40 percent higher at Rs 47,240 per 10 grams. While silver July futures were ruling Rs 539 or 1.10 percent up to trade at Rs 49,360 per kg. Earlier this week, gold price hit a fresh record high of Rs 47,929 per 10 grams, surging 25 percent from March lows. “Gold prices corrected yesterday after Federal Reserve Chairman Jerome Powell said the US central bank stands ready to provide more support for the domestic economy however the underlying trend remains bullish as the correction gave investors the opportunity once again to go long,” said Bhavik Patel, Senior. Technical Research Analyst at Tradebulls Securities.

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Globally, spot gold was unchanged at $1,743.99 per ounce. US gold futures rose 0.2 per cent to $1,748.50. Palladium fell 1.4 percent to $2,029.50 per ounce and silver eased 0.1 percent to $17.38, while platinum gained 0.4 percent to $836.01. “The FOMC will release monetary policy minutes tonight hence the sentiment will be upbeat in the yellow metal. The strength in the dollar also supported the gold on the MCX. We maintain our bullish stance for intraday,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers, said.
“There is ample support from here to $1700 and so every dip is expected to be bought into,” Bhavik Patel added. “Any dips near 47150 could be used as an opportunity to go along with a strict stop loss of 47000 and target of 47350,” he further said.

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On the domestic equity front, headline indices were trading in positive territory. BSE Sensex gained 204 points or 0.67 percent to trade at 30,400. While the broader Nifty 50 index was ruling at 8,941.75, up 62.65 points or 0.71 percent.

 

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