Gold price today, 20 May 2021: Gold trades flat on rise in US Treasury yield, US dollar; may touch Rs 49,200

Gold MCX June has breached its horizontal development line resistance at 48400 and closed effectively above it yesterday nonetheless, it’s close to its main resistance at 200 day SMA which is at 49000 zones, stated an analyst. Picture: Reuters

Gold Value At present, Gold Value Outlook, Gold Value Forecast: Gold costs had been buying and selling decrease in India on Thursday, as worldwide spot costs had been flat and hovering a greater than four-month excessive, on a firmer greenback and rise in US Treasury yields. On Multi Commodity Change, gold June futures had been buying and selling Rs 150 or 0.31 per cent down at Rs 48,524 per 10 gram. Within the earlier session, it ended at Rs 48,674. Silver July futures had been additionally buying and selling weak, down Rs 300 or 0.41 per cent at Rs 72,076 per kg, as towards the earlier shut of Rs 72,374 per kg. Globally, spot gold was flat at $1,869.50 per ounce, after hitting its highest since January 8, 2021 at $1,889.75 on Wednesday. US gold futures fell 0.7 per cent to $1,869.20 per ounce. Minutes from the US Federal Reserve’s final financial coverage assembly, revealed that increased rates of interest enhance the chance value of holding bullion. The greenback index bounced off from a close to three-month low, whereas benchmark US Treasury yields rose to a one-week excessive after the Fed minutes, based on Reuters.

Rajesh Palviya is Vice President– Analysis (Head Technical & Derivatives) at Axis Securities Restricted

The Greenback Index is constantly buying and selling on the decrease facet with US 10-year Treasury yield is underneath 1.65 ranges. If at the moment’s US Information i.e., Manufacturing index and jobless declare present constructive indicators then, gold may even see some vary sure second in brief time period. Else, development might resume. Technically talking, Gold MCX June has breached its horizontal development line resistance at 48400 and closed effectively above it yesterday nonetheless, it’s close to its main resistance at 200 day SMA which is at 49000 zones. Therefore, anticipate some promoting stress at these ranges. Subsequently, it’s seemingly that costs might proceed to commerce in a variety between 48400 and 49000 ranges; a break above 49000 signifies bulls taking cost, this may lead costs in the direction of 52000 and better zones. Alternatively, a fall under 48400 would push costs in the direction of 48000.

Bhavik Patel, Senior Technical Analysis Analyst, Tradebulls Securities

Gold recovered neatly yesterday on account of two elements. First was reversal of cash flows the place massive establishment gamers had been exiting crypto currencies and turning to gold. The huge selloff in Bitcoin got here after China stated that digital currencies couldn’t be used as a type of cost. Gold was the one asset standing tall yesterday within the sea of pink as shares, commodities (Base metals and vitality pack), and cryptocurrencies plunged. The second motive was the minutes revealed from the FOMC which said that though numbers of members had been open to debate a plan for adjusting the tempo of asset purchases, the Fed chairman said that the Fed would keep the course till the economic system strengthened even additional and coronavirus circumstances fell sharply. So within the quick time period there is no such thing as a threat for curiosity getting raised which additionally boosted gold costs. Gold upside momentum is anticipated to proceed until it’s above $1850 in COMEX which additionally represents 200 day transferring common. Wanting on the sturdy rally yesterday, we consider gold will see some sideways motion going ahead and anticipate Rs 49,000-49,200 ranges to be examined on the upper facet quickly. Purchase on dips needs to be the technique this week with lengthy positions to be taken round Rs 48,000 with stoploss of Rs 47,800.

Ravindra Rao, CMT, EPAT, VP — Head Commodity Analysis, Kotak Securities Ltd

COMEX gold trades 0.4% decrease close to $1873/oz after a 0.7% acquire yesterday when it examined the best degree since early Jan. Gold got here underneath stress as FOMC minutes famous that discussions over tapering of bond purchases have begun even because the central financial institution continues with an accommodative stance. ETF outflows additionally present revenue taking by traders. Nevertheless, supporting worth is choppiness within the monetary market amid inflation considerations and considerations about China’s commodity purchases. Gold rallied sharply in previous couple of days nevertheless lack of any constructive set off from FOMC minutes might make it weak to some revenue taking.

(The views on this story are expressed by the respective consultants of analysis and brokerage agency. Monetary Categorical On-line doesn’t bear any duty for his or her recommendation. Please seek the advice of your funding advisor earlier than investing.)