The broader trend on COMEX could be in the range of $1720-1755 and on domestic front prices could hover in the range of Rs 46,800-47,500, said Damani.
Gold prices were steady at Rs 47,075 per 10 gram in the Mumbai bullion market on rupee appreciation and increasing US-China trade war.
The rate of 10 gram 22-carat gold in Mumbai was Rs 43,121 plus 3 percent GST, while 24-carat 10 gram was Rs 47,075 plus GST. The 18-carat gold quoted at Rs 35,306 plus GST in the retail market.
Gold prices witnessed range-bound trading on Tuesday over strong equity indices as easing lockdown measures increased investors appetite for riskier assets. The violent public protest in several US cities and tensions between US and China is the developing story which may keep down side limited in gold prices, said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
The bullion metal traded within a $100 range over the last month at $1,775 at the higher end and $1,675 at the lower end.
India’s gold import for May dived 99 percent to 1.4 tonnes from 133.6 tonnes a year earlier, a second successive month of 99 percent fall due to nationwide lockdown in world's second-largest gold consuming country.
The US is considering welcoming people from Hong Kong in response to Beijing's push to impose national security legislation in the city, US Secretary of State Mike Pompeo said. In a sign that the worst of the economic downturn from the coronavirus pandemic might be over, US manufacturing activity ticked up slightly from an 11-year low.
Ravindra Rao, VP-Head Commodity Research at Kotak Securities said: "Risk-on is upbeat amid optimism over reopening of economies, signs of stabilisation in global factory activity and hopes of more stimulus from major economies despite lingering worries over US-China and worsening social unrest in the US is keeping gold in a narrow range.
Weakness in the US dollar is supporting the gold bulls. While bias for safe-haven gold may be sideways to lower buying might remerge in corrections."
The broader trend on COMEX could be in the range of $1,720-1,755 and on domestic front prices could hover in the range of Rs 46,800-47,500, according to Navneet Damani, Vice President, Motilal Oswal.
The gold/silver ratio or the amount of silver required to buy an ounce of gold stood at 95.02 to 1.
Silver prices rose Rs 210 to Rs 49,540 per kg from its closing on June 1.
In the futures market, gold rate touched an intraday high of Rs 47,200 and an intraday low of Rs 46,865 on the Multi-Commodity Exchange (MCX). For the June series, the yellow metal touched a low of Rs 36,572 and a high of Rs 47,980.
Gold futures for June delivery slipped Rs 133, or 0.28 percent, at Rs 46,950 per 10 gram in evening trade on a business turnover of 57 lots. The same for August delivery declined by Rs 210, or 0.45 percent, at Rs 46,928 on a business turnover of 15,315 lots. The far month October contract declined Rs 201, or 0.43 percent to Rs 47,066 with a business volume of 5,339 lots.
The value of the August and October contracts traded so far is Rs 2,007.62 crore and Rs 38.69 crore, respectively.
Similarly, Gold Mini contract for June gained Rs 106, or 0.23 percent at Rs 47,124 on a business turnover of 509 lots.
Patel expects gold prices to trade sideways to up with MCX Gold August support at Rs 46,600, resistance at Rs 47,350.
MCX Gold has given negative breakout from a rising trend line channel, price is expected to trade negatively. Sustaining below Rs 47,000 next leg of correction would drag price towards Rs 46,700-46,600 levels in intraday, according to Axis Securities.
The price is trading below 20 EMA which is a bearish sign.
Motilal Oswal said spot gold has support at $1,727-1,720 whereas resistance is at $1,745-1,755 levels.
At 12:20 pm (GMT), spot gold was flat at $1,740.07 an ounce in London trading.
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