Today, after the federal Reserve projected the slowdown in the global economy, people all over the world saw gold prices shoot up to an extremely high level. The grim Outlook spurred the safe Haven demand of the investors. The federal Reserve projected that the economy of United States would contract 6.5% in the year 2020. Anuj Gupta,deputy vice president commodities and currency research of Angel broking limited says that this projection is a major reason that people are shifting there funds towards safe haven investments. For intraday perspective, traders can buy gold at 47000 levels for the target of 47600 levels with stop loss of 46750.
MCX had gold August futures trading at a green signal of rupees 537 at Rs.47,163 per 10 grams. This gain is equivalent to 1.15%. At the same time July futures were placed at rupees 48,809 per kg which was nearly 1.51 % more or up rupees 724.
Coronavirus cases in India are rising sharply with the total number of cases reaching 286,579 which fatalities crossing the 8000 mark. Federal Reserve The demand for safe haven investment is witnessing a study rise. Jigar Trivedi, fundamental research analyst at Anand Rathi shares and stock brokers said that the usdinr pair has also gone up making the overall condition of the markets positive for yellow metal for the intraday trade today.
Meanwhile, on a global level spot gold decrease 0.2% at $1,732.56 per ounce and US gold futures saw a rally of 1.2% settling at $1,741.90.
SPDR gold trust is the world’s largest gold backed exchange traded fund. In one of its statements it said that its holding climbed up 0.4% at 1129.50 tonnes. Palladium plunged to $1,929.96 per ounce. Silver also dropped down to $17.95. However, platinum rose 0.5% .