Gold prices hit one-week low on Wednesday as investors book profits; silver rates gain

Gold prices fell to a one-week low level on Wednesday as investors booked profits amid upbeat plans in some countries to partially lift restrictions due to coronavirus, says Navneet Damani, Vice President, Motilal Oswal. On MCX, gold June futures were trading Rs 48 down at Rs 46,018 per 10 grams while silver July futures were ruling at Rs 42,473 per kg, up Rs 129 or 0.30 per cent. “Investors will now look for any forward guidance from the US Fed, which is expected to issue a policy statement later today. Apart from the Fed, US Q1 GDP will also be in focus, any number weaker than the expectation will lend support to metal prices,” Damani added. 

Meanwhile, the total number of coronavirus cases in India has crossed the 31,000-mark, according to the government data. Globally, gold prices edged higher on Wednesday as the dollar weakened amid plans to ease major economies out of coronavirus lockdowns, while investors awaited any forward guidance from the U.S. Federal Reserve’s policy statement due later in the day, according to a Reuters report. Spot gold rose 0.1% to $1,708.53 per ounce. US gold futures climbed 0.2% to $1,725.50 per ounce. Palladium rose 0.3% to $1,921.81 an ounce and platinum climbed 0.2% to $773.67 per ounce, while silver fell 0.3% to $15.15 per ounce.

“We are expecting some correction in gold prices as the rupee is appreciating against the US dollar. For intraday perspective, trades can go for sell in gold at 46300 levels, with the stop loss of 46650 and for the target of 45700 levels. In the international market, prices may test $1680 levels,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd told Financial Express Online. Last month, commodity exchanges trimmed trading hours, it now begins at 9 am and ends at 5 pm.

On the domestic equity front, BSE Sensex and Nifty 50 were trading over one per cent higher. Sensex was ruling at 32,460.87, up 346.35 points or 1.08 per cent. While the broader Nifty 50 index was approaching the crucial 9,500-mark, up 106 points or 1.13 per cent.

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