Gold pricesin India continue to fall today (May 27, 2020) after falling in three out of last four sessions. In the futures market, gold contract for June delivery slipped by as much as 0.03% to Rs. 46,306 per 10 gm after shedding close to Rs. 650 in the previous session.
Gold prices in the previous session on stronger rupee and resilience in the equity markets declined below Rs. 47,000 mark in the Mumbai bullion market.
Gold Price in International Market
In the international markets, gold prices recovered from previous losses as investors turned to safe-haven asset amid Hong Kong and Venezuela tensions. Spot gold however remained steady at $1711.45 per ounce.
An Iranian vessel with fuel forayed into Venezuelan waters even as the US warned of a likely retaliation to the shipment.
US confidence data nudges higher for May month
US consumer confidence stabilized for the month of May suggested that the worst of the novel coronavirus led economic slump is behind us as the US economy begins to open up. Notably on Tuesday, the New York Stock Exchange opened for the first time in 2 months.
Gold has been losing appeal as risk-sentiment improves and equities reverses losses but at the lower levels could remain supported due to heightening US-China tensions as well as grim economic outlook.
India's gold Imports slump by 100% in April
Back home, as per the commerce data, gold import for the month of April shrank early 100% to $2.83 million as against $3.97 billion in the same month last year as the country remained under nationwide lockdown to curb coronavirus spread.
Outlook for gold price
Gold prices are expected to trade sideways to low and MCX june gold may get support at Rs. 46,400 and may face resistance at Rs. 47300 per 10gm as per analyst at HDFC securities.