Gold Gains As Grim Economic Data Pushes Investors To Safe Haven

On May 7, 2020, gold prices in the futures market for delivery in June jumped in price by 0.3% to Rs. 45508 and recorded an early high of Rs. 45525 per 10gm

Gold in the bullion market on Wednesday on weakness in rupee inched higher in price by Rs. 307 to Rs. 45 864 per 10 gm. This is against the decline seen in gold prices in the futures market which slumped by as much as Rs. 380 or 0.83% to Rs. 45371.

In the international market, gold prices on Wednesday (May 6, 2020) declined by 1% on strength in dollar, supply easing as gold refiners have restored almost full operations and on risk-on sentiment. Nonetheless losses remain curbed due to the growing US-China tension. Spot gold declined 1.2% to $1,685.00 per ounce by 11:11 a.m. EDT (1511 GMT).

Notably, the US President said that he is keeping an eye on whether or not China is keeping up with its commitments of purchasing more of US goods under the phase I trade deal.

Again as the private payroll in the US paints a grim picture with a record lay-off of 20.2 million workers in April, investors will be pushed to safe-haven including gold.

Outlook on Gold Prices

On the Comex prices shall be between $1680-$1725 while in the domestic market gold prices could range between Rs 45,490-46,100
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