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Gold Price Today, 22 June 2021: Gold up for 2nd day after falling 4% last week; may hit Rs 48,000 next week

The Financial Express logo The Financial Express 22-06-2021 Surbhi Jain
In the previous week, MCX gold fell 4.3 per cent and in COMEX it declined over 5.5 per cent. © Provided by The Financial Express In the previous week, MCX gold fell 4.3 per cent and in COMEX it declined over 5.5 per cent.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India gained for the second consecutive day on Tuesday, on the back of positive global trends where a pullback in the dollar lifted demand for the safe-haven metal.On Multi Commodity Exchange, gold August futures were trading Rs 97 or 0.21 per cent up Rs 47,171 per 10 gram, over the previous close of Rs 47,074 per 10 gram. Silver July futures were trading flat at Rs 67,722 per kg. In the previous week, MCX gold fell 4.3 per cent and in COMEX it declined over 5.5 per cent. Globally, spot gold was up 0.1 per cent at $1,784.83 per ounce, and US gold futures gained 0.1 per cent at $1,783.90 per ounce. The dollar index retreated from two-month highs against its rivals, according to Reuters.

Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities

Last week's announcement by the Federal Reserve that they might make two interest rate hikes in 2023 and talking about timeline to taper their asset purchases sent the equities and precious metals markets into a meltdown last week. But now we are witnessing complete turnaround in both equities and precious metals as they have started yielding strong gains. This was prompted after US Fed made it clear that they would continue to let inflation run hot compared to their previous monetary mandate and market is now thinking that Federal Reserve will have less room to raise rates very far once the hiking cycle begins because of high inflation. Gold is also finding support from ECB as central bank is not ready to look at tightening its monetary policy anytime soon.

In COMEX, gold's last week correction of more than 5.5% also plays in its favor as technical positioning is looking better. Gold has cleared its resistance of $178 in COMEX and next resistance would be $1800. In MCX, we believe the bulk of selling is over and gold is expected to trade higher going ahead and reclaim levels of 48000 by early next week. Buy on dips is recommended with stoploss of 46600.

Rahul Gupta, Head of Research-Currency at Emkay Global Financial Services

The recent sluggish momentum in gold is due to the lack of fresh catalysts as well as challenges to the US-China trade deal. Dollar index is giving back some territory as traders await to hear more from Fed’s Powell testimony due later today. Any dovish-leaning Powell may give rise to some fresh buying in gold. However, a bullish trend could be extended towards 47750-48450. Areas around 46900 are support. The counter can extend losses towards 46500-46100.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades higher near $1789/oz after a 0.8% gain yesterday. Gold has recovered from recent lows as US dollar index shed some of its gains. Also supporting price is rising inflation concerns, virus risks and uneven recovery. ETF activity however shows lack of confidence in investors. Also weighing on price is Fed's projection of early rate hikes. Gold is seeing some relief rally however it may not continue for long as US dollar may benefit from diverging monetary policy outlook.

Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold and Silver witnessed a rebound on Monday, tracking overseas prices. Market participants will listen now to congressional speeches from a number of U.S. central bank officials, including Fed Chair Jerome Powell, who is due to speak on Tuesday. On the domestic front, MCX Gold August supports are at Rs 46,753 and Rs 46,432. Resistances are at Rs 47,275 and Rs 47,476. MCX Silver July holds support near Rs 66,942 and Rs 66,122. Resistances are at Rs 68,268 and Rs 68,774.

(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.)

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