Gold Price Drops Ahead of Akshaya Tritiya; 'Pile Up the bullion,' Says Expert

Ahead of Akshaya Tritiya, gold was trading lower in the Indian market on Wednesday. On the Multi-Commodity Exchange (MCX), gold futures were down by 0.32% at Rs 47,480 for 10 grams at 0945 hours. Silver futures on MCX dropped 0.76% or Rs 745 to Rs 67,820 per kg.

Gold prices fell in the international market on Wednesday as an increase in US bond yields had dimmed the demand for the safe-haven precious metal. Spot gold was down 0.2% at $1,832.73 per ounce by 0109 GMT. US gold futures eased 0.1% to $1,834.30. The dollar index was up 0.1%, making gold more expensive for other currency holders, according to Reuters.

Gold and silver showed mixed trends on Tuesday. “Gold price closed lower on Tuesday, while Silver price closed up to trade near a two-month peak, owing to a positive industrial demand. On the Multi-Commodity Exchange (MCX), June gold contracts closed lower by 0.66% at Rs 47,633 for 10 grams. July contract silver futures was closed on Monday at 0.54% higher at Rs 71,929 a kilogram,” said Amit Khare. AVP – Research, GCL Securities Limited.

“Overall technical indicators are giving positive signals, daily technical chart is showing strength, so traders are advised to go long in dips near support levels for intraday, below are some technical levels for intrday. June Gold closing price 47,633, Support 1 – 47,400, Support 2 – 47,200, Resistance 1 – 47,850, Resistance 2 – 48,150. July Silver closing price 71,929, Support 1 – 71,300, Support 2 – 70,700, Resistance 1 – 72,550, Resistance 2 – 73,150,” he added.

“Gold prices have been neutral for today as the market is stalled on the verge of COVID in India. However the US treasury comeback has brought an uptick on international rates. I would be suggesting people to pile up the bullion as the easiest method to ward off any economic stress,” Amit Gupta, managing director, SAG Infotech.

“Speculative flows on the CME shows money managers raised their net long exposure in April. On physical consumption, Chinese demand has been strong this year, though Indian offtake will take a hit given the pandemic situation. We see a chance of Gold prices getting proximal to US$1,900/oz mark in the next 2-3 months,” said Hitesh Jain, lead analyst – Institutional Equities, YES SECURITIES.