Gold prices on the MCX on Friday (April 30, 2021) traded with minor gains or negative as the international rates took a downward journey. At around 12:39 pm, MCX gold prices for June delivery traded weak by Rs. 6 at Rs. 46720 per 10 gm. Silver prices on the other hand was traded weak at Rs. 67450 per 10 gm.
In the US strong economic data together with higher US treasury yield also led to a decline in gold price, as its safe-haven took a hit. In the first quarter of 2021, the US GDP surged 6.4 percent sequentially and 5.53 lakh initial jobless claims were filed over the past week, with government support
Globally, spot gold slipped 0.3 per cent to $1,765.15 per ounce, down nearly 0.6 per cent so far in the week. US gold futures were down 0.1% to $1,765.60 per ounce.
Notably, despite the fall, gold is set for its first monthly gain this year, Despite the decline, bullion was poised for its first monthly gain of this year, having jumped to a two-month high of $1,797.67 on April 22, according to Reuters
Analysts held the view that of late there has been seen weakness in the dollar as rupee has seen some resilience. Also, dovish Fed and massive global stimulus to revive the battered economies are positive for gold.
Gold MCX: Where the gold prices are headed?
"Currently MCX gold price is hovering near the crucial 46600 zone, if it falls below that then the downtrend may continue till 45000. However, a reversal may again push prices to 48000," Rahul Gupta, Head of Research, Emkay Global Financial Services, told a leading business daily.
"Mixed data came from the US economy, however, lower interest rates will provide support for gold and silver. For today we expect some profit booking in gold and silver over positive US GDP data," Anuj Gupta, VP - Commodity and Currencies Research, IIFL Securities, told Financial Express Online. He advised traders to go for 'sell' in gold at Rs 46,800 with the stop loss of Rs 47,100 for the target of Rs 46,300 per 10 gram. "They can also go for sell in silver at Rs 68,900 with the stop loss of Rs 69,400 for the target of Rs 67,500," he added.