Gold price today 16-04-2021: Expert says BUY, pegs target price at Rs 47300; upward momentum to continue

Gold Price today 16-04-2021: Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi says that  Comex gold climbed to near seven week high around $1,760/oz buoyed by a weaker dollar in tandem with US Treasury yields, which bottomed at monthly lows of 1.55%. On top of that, the precious metal benefited from some safe-haven demand stemming from the news that the US FDA recommended states pausing the use of Johnson & Johnson's coronavirus vaccine after six cases of blood clots.
 
Jigar expects mild correction in a day session but still gold is a buy on dip. He says BUY MCX GOLD JUNE with stop-loss of Rs 46900 and target price of Rs 47300

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Anand Rathi says that a slew of data releases in the US calendar, including upbeat retail and jobless claims data, capped some of this upside momentum. The dollar index was little changed as investors balanced bullish data showing U.S. retail sales rose by the most in 10 months in March. The yellow metal looked set to post a second straight weekly gain on inflationary concerns. U.S. Treasury yields plummeted to one month lows on Thursday after the U.S. government imposed a broad array of sanctions on Russia as punishment for alleged misdeeds, including interfering  in the 2020 U.S. election. Hence Anand Rathi expects gold price to continue with upward momentum.

CapitalVia Investment says that US Federal Reserve Chair Jerome Powell said on Wednesday that the central bank would reduce its monthly bond purchases before committing to an interest rate hike, indicating that the sequence of monetary policy adjustments is still months away. Technically, International Gold is trading bullish momentum. Prices are resisting below $1750-$1760 levels. On the domestic front, MCX Gold June opened on a positive note and has been trading with a marginal sideways and positive bias. They expect prices to continue to trade in a choppy manner and resist below Rs 47000 levels during the evening session