Gold prices were trading lower in India on Friday, tracking lower-than-expected global markets as firm US Treasury yields and a stronger US Dollar weighed on investor sentiment. At MCX, Rs 125 or 10 g were traded on the Gold April futures, down from the previous closing rate of Rs 44,695 to Rs 44,570 or 0.28%.
Compared with a previous close of Rs 64 869 on the multi-commodity exchange, Silver May futures ruled 64,821 per kg, down Rs 48 or 0.07%. In August last year, gold on MCX reached a record high of Rs 56,191 for every 10 g. The yellow metal has seen uncertainty since then. MCX gold prices have plummeted to Rs 11,621 per 10 g or 20.68%.
According to the VP-Head Commodity Research at Kotak Securities, Mr. Ravindra Rao, gold is range-bound as the worries because of coronavirus continues. It has led to the loose commercial policy stand of major central banks, and selling pressure in Chinese equity markets is offset by weaker investor interest and general strength in the US dollar. “Gold may experience irregular trade as a result of mixed trade in the US dollar and bond yields; however, the general bias may be on the upside as the Fed’s dovish stance may lend some support,” he added.
Gold has been trading sideways to damaging for many days, as the gold markets have lost nearly 18% in the last several months. However, it traded choppily and tried to stabilize last week, and gold prices dropped but stayed in a tight range.
“Prices were unable to break through resistance around 45600 and dropped back to the downside. The market is looking weak, with strong support seen near the 44400-44200 zones; however, the price will remain choppy. “The price will only rise above the 200 SMA, which is currently at 44800,” said Kshitij Purohit, Lead Commodities & Currency Analyst at CapitalVia Global Research.
Globally, spot gold was unchanged at $1,726.96 per ounce, while US gold futures remained unchanged at $1,725.50 per ounce. According to Reuters, the metal reached a one-week low of $1,721.46 in the previous session.
