Gold price today 20-05-2021: Expert says SELL Gold around Rs 48850 with a stop-loss of Rs 49050 for the target of 48330

Gold price today 20-05-2021: Prithvi Commodities, in its report, said that Gold and silver showed a roller coaster move on Wednesday amid selloff in crypto currencies. Both the precious metals settled on a mixed note in the international markets. Gold June futures contracts settled at $1881.50 per troy ounce with a gain of 0.72% and silver July futures contracts settled at $28.02 per troy ounce with a loss of 1.07%. Both the precious metals also settled on mixed notes in the domestic markets. Gold June futures contracts settled on a positive note at 48674 per 10 gram with a gain of 0.76% and silver July futures contracts settled on a weaker note at 72374 per one kilogram with a loss of 1.12%. Catch-up rally in the gold sent prices to four and half months high on Wednesday after sell-off in crypto currencies and U.S. equities.

Prithvi Commodities said that Bitcoin continues to crumble at mid-week, falling below $40,000 amid reports of China cracking down on crypto currencies' use for payments and as Elon Musk has made disparaging remarks about cryptos recently. Bitcoin is down around 40% after hitting a high above $65,000 in mid-April. However, silver prices slipped due to sell-off in base metals and other asset classes. The dollar index also rebound from their lows and restricts gains in precious metals. The minutes of the Federal Reserve’s April monetary policy meeting show that with momentum building in the U.S. economy, the committee is starting to talk about tightening its current monetary policy. If the U.S. Federal Reserve starts tapering bond buying program could impact gold and silver prices again.

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Prithvi Commodities said it expects both the precious metals to remain volatile in today’s session and gold could face stiff resistance around $1900 per troy ounce. Gold is having support at $1872-1858 and resistance at $1892-1902 per troy ounce; silver is having support at $27.70-27.44 per troy ounce and resistance at $28.30-28.74 per troy ounce. 

At MCX, gold is having support at 48480-48300 and resistance at Rs 48880 – Rs 49020 levels; silver is having support at Rs 71700 – Rs 71100 and resistance at Rs 72800 – Rs 73300 levels. Prithvi Commodities has suggested selling gold around Rs 48850 with a stop-loss of Rs 49050 for the target of 48330.