Gold price: US, China tensions to make yellow metal shine bright, expert says

The ongoing face-off between the two most powerful countries US and China may dampen the global market sentiments even more, helping the yellow metal shine further, Senior technical analyst Anuj Gupta told Zee Business. Gold, which is traditionally used as a safety net in times of crisis, may gain from the overall economic and geo-political situation, he added.

Gupta who is a Deputy Vice President, Commodity and Currency Research at Angel Broking also expects Gold’s position to firm up on account of a weakening dollar.

Outlook for Gold price is likely to remain positive for this week, he said. He expects Gold June futures to reach around Rs 47800 per 10 gms mark. He puts the stop loss at Rs 46600. Today the June Futures were trading at Rs 46889 at 1:20 pm, 0.2 per cent down from the Friday levels. The Gold June Futures on Friday ended the day in green. They were up by almost 1.5 per cent at 47061 at close. Gold June futures had touched a life time high of Rs 47980 per 10 gms on MCX last week.

Gold ETF has got a very good response in April, Gupta said. The April month saw a record buying by the investors, with 170 tn of buying activity observed taking the overall selling to 3355 tn. The May data is still not declared.

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In the international markets, Gold prices ticked higher on Tuesday as brewing US-China tension over Hong Kong lifted demand for the safe-haven metal, but the easing of coronavirus-induced curbs supported equities and capped further gains in bullion. Spot gold rose 0.2 per cent to USD 1,731.80 per ounce by 0523 GMT. US gold futures were also down 0.2 per cent to USD 1,731.80.

With input from Reuters