Gold prices snapped the 5-day losing streak on Thursday after the US Federal Reserve decided to keep the interest rates unchanged near zero. MCX gold June futures were trading Rs 163 or 0.35 per cent higher at Rs 47,256 per 10 gram, as against the previous close of Rs 47,093. MCX silver June futures too surged Rs 735 or 1.08 per cent to Rs 69,788 per kg. Silver futures closed at Rs 69,043 per kg in the previous session. Globally, gold prices rose on Thursday bolstered by the US Federal Reserve’s pledge to maintain an easy monetary policy to aid economic recovery, while a weaker dollar provided further support. Spot gold was up 0.2 per cent at $1,784.94 per ounce, having dipped to $1,762 in the previous session, its lowest since April 16, according to Reuters. US gold futures rose 0.6 per cent to $1,784.50 per ounce. The dollar index edged 0.1 per cent lower against its rivals, boosting gold’s appeal for other currency holders.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades about 0.8% higher near $1788/oz after a 0.3% decline yesterday. Gold has edged up as the US dollar index slumped to 1-month low on back of Fed’s decision to maintain its accommodative stance despite improving outlook for the US economy. Also supporting gold is hopes of additional stimulus measures by the Biden administration. However, weighing on price is weaker investor buying and concerns about Indian demand. Gold may remain choppy reflecting the trend in the US dollar as market players counter Fed’s dovish stance against improving economic outlook.
Hareesh V, Research Head Commodities at Geojit Financial Services
Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting. Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity. Prices will continue with mild positive bias as long as $1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $1820. A close below $1720 is a sign of immediate trend reversal.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices rebounded from session lows and closed up on the session on Wednesday as the dollar dropped in the wake of the Fed decision. US Treasury yields also eased after rallying initially and lent support. International spot gold and silver prices have started higher this Thursday morning in Asian trade tracking the easing of the U.S. Treasury yields and a weaker dollar after the Fed meeting. Technically, MCX Gold June could trade above 47100 levels indicating a bullish momentum up to 47300-47500 levels. Support is at 47050-46900 levels. MCX Silver could see a sideways momentum within the narrow range of 67400-68200 levels.
(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)