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Gold price today, 19 May 2021: Gold trades flat, MCX silver gives up Rs 73,000; analysts say ‘buy on dips’

Resurgence of COVID-19 pandemic in certain Asian countries is hurting global market sentiments

Gold Price Today, Gold Price Outlook, Forecast: Gold prices were trading flat in India on Wednesday, even as international spot traded with gains on a weaker US dollar. Also, a fall in US Treasury yields aided the up move in the yellow metal. The weak US data helped to ease fears of out-of-control inflation and bets that the US, said an analyst. On Multi Commodity Exchange, gold June futures were trading on a flat note at Rs 48,309 per 10 grams, as against the last close of Rs 48,307. Silver July futures were ruling Rs 456 or 0.62 per cent down at Rs 72,740 per kg, slipping below the crucial 73,000-mark. In the previous session, silver futures ended at Rs 73,196 per kg. “MCX Gold June futures opened on a negative note and were trading above the resistance zone of 47900-48150. If prices trade on the downwards side, then 48200-48000 levels may be tested. This dip could act as a buying opportunity for the investors,” Kshitij Purohit, Lead Commodities & Currency at CapitalVia Global Research, told Financial Express Online.

In the international market, gold continued to gain and touched a four-month high of $1875.04 earlier in the session as a weaker US dollar and rising price pressure lifted bullion’s appeal as an inflation hedge. However, an increase in US 10-year Treasury yields to 1.65% limited gains, said an analyst. “Concerns about accelerating inflation and caution ahead of the FOMC meeting minutes is likely to weigh on risk appetite in today’s session,” Jigar Trivedi is a Fundamental Research Analyst at Anand Rathi Shares and Stock Brokers, told Financial Express Online.

Also, the resurgence of the COVID-19 pandemic in certain Asian countries is hurting global market sentiments. “Investors will closely watch FOMC minutes today to gain some insight on the Federal Reserve policy outlook after a sharp rise in US inflation to 12-year high levels in April. So, we may see gains in gold today on safe-haven,” Trivedi added.

On the COMEX front, gold was trading marginally lower near $1866/oz after a near flat close in the previous session. Gold has corrected after testing February highs on Tuesday as market players positioned for FOMC minutes later today which may give more clarity on Fed’s monetary policy stance, said Ravindra Rao, CMT, EPAT, VP — Head Commodity Research, Kotak Securities Ltd. Gold ETF investors also moved to the sidelines. “However, supporting prices are Middle-east tensions and mixed economic data from major economies. Gold may remain sideways to lower as Fed’s dovish stance is largely anticipated,” he added.

(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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