Gold Futures Rebound To Trade Above Rs 47,500 Mark: Should You Invest?


Gold Rates Today: Domestic spot gold closed at Rs 47,478 per 10 grams on Tuesday

Gold Price In India: Domestic gold futures witnessed a volatile trading session on Tuesday, April 20, amid rupee appreciation earlier in the day. On Multi Commodity Exchange (MCX) gold futures, due for a June 4 delivery, were last seen trading higher by Rs 140 – or 0.3 per cent – at Rs 47,533, having swung between Rs 47,128 and Rs 47,594 during the session so far, compared to their previous close of Rs 47,393. Silver futures for a May 5 delivery were last up 0.81 per cent at Rs 68,875. Some experts believe that good prices may rise in the upcoming sessions if the same pattern continues. (Also Read: Is Silver The New Gold?) 

”On the domestic front, MCX Gold May, is forming a “Head and Shoulders” candlestick chart pattern on hourly timeframe. If prices sustain above 46850 level, which is the neckline of above-mentioned pattern, we may expect prices to make higher highs. On the downside, 46700-46600 might be act as support,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited. 

Domestic spot gold closed at Rs 47,478 per 10 grams on Tuesday, and silver at Rs 68,743 per kilogram – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

Spot gold  slipped by Rs 305 in Delhi:

In the national capital, gold prices slipped by Rs 305 to Rs 46,756 per 10 gram, tracking a decline in the international prices of precious metals, as well as rupee appreciation in an early session. In the previous trade, the yellow metal had closed at Rs 47,061 per 10 gram. Silver also fell by Rs 113 to Rs 67,810 per kilogram on Tuesday. Meanwhile, the rupee climbed 23 paise to 74.64 against the American currency in opening trade today.

In global markets, gold prices traded under pressure after US bond yield recovered:

According to news agency Reuters, gold prices edged lower today, witnessing a decline due to rise in U.S treasury yields. However, a softer American currency capped the losses and kept the bullion near a seven-week peak scaled in the earlier sessions. US treasury yields climbed above the 1.6 per cent mark, after touching a five-week low last week. The yellow metal also considered a hedge against inflation, touched over six per cent this year tracking higher yields.

What analysts say

”International gold opened on a flat note today and is moving in sideways to bearish trend since morning session. Economic optimism seems to have peaked, making it impossible for markets to become even more euphoric, and the bond yield rally seems to have run out of steam, at least for the time being. Technically, International gold is trading with positive bias and may test resistance in the range of $1775-$1785 levels in the evening session,” said Kshitij Purohit, Product Manager, Currency & Commodities, CapitalVia Global Research Limited. 

“Gold trades mixed as support from weaker US dollar, pick up in ETF buying, rising virus cases, prospect of higher Chinese imports is countered by rise in bond yields and general optimism about US and Chinese economy and vaccination progress.”

Gold may witness choppy trade amid mixed factors however general bias may be on the upside until US dollar remains under pressure,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

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