Gold price today, 25 May 2021: Yellow metal falls on weak global cues; if gold holds 49,000, it may hit 50,500

n MCX, gold has resistance around Rs 48,800 where the 200 day moving average is.

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Tuesday, following global rates as hopes of quick economic recovery lifted demand for riskier assets, while a weaker dollar and lower US Treasury yields limited losses for the safe-haven metal. On Multi Commodity Exchange, gold June futures were trading Rs 103 or 0.21 per cent down at Rs 48,450 per 10 gram, as against the previous close of Rs 48,553. Silver July futures were trading at Rs 71,501 per kg, down Rs 310 or 0.43 per cent, as compared to the last close of Rs 71,811 per kg. Globally, spot gold was down 0.2 per cent at $1,877.26 per ounce. US gold futures fell 0.3 per cent to $1,879 per ounce. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.3 per cent to 1046.12 tonnes on Monday from 1042.92 tonnes on Friday.

Rahul Gupta, Head of Research-Currency at Emkay Global Financial Services

The US inflation is a key focus for investors, meaning uncertainty over what happens to interest rates. The Fed’s dovishness will continue to support gold prices and we may expect MCX gold to surge towards Rs 49,000, consistent trading above that may push prices towards Rs 49,650-50,100. While on the downside crucial support is located around Rs 48,000. If a fall retains below Rs 48,000, then price may breach Rs 47,700 and Rs 47,350.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

There is technical support for gold in COMEX around $1849 where the 200 day moving average is and resistance for gold in COMEX is at $1898 just shy below the round psychological number of $1900. Hedge funds are returning back to gold and seen renewed speculative interest as cryptocurrencies have seen a rise in significant volatility. Money managers have increased speculative long positions and gold has not managed to put together a three-week buying spree of this magnitude since last June highlighting the continued improvement in the technical outlook. In MCX, gold has resistance around Rs 48,800 where the 200 day moving average is. The momentum oscillator (RSI_14) is bullish but not in the overbought zone indicating room for further upside. This week support for gold is at Rs 47,800 where the 20 day moving average is. We recommend going long near Rs 48,200-48,000 for expected target of Rs 48,800 and stop loss of Rs 47,700.

NS Ramaswamy, Head of Commodities, Ventura Securities

Today, technically we expect the MCX Gold June prices to consolidate in the range of Rs 47,950-49,000. It is going to break out on either side in the coming trading sessions. However, the overall trend is upside for the short term period. Currently, MCX Gold’s price is facing a strong resistance zone at the 200-day simple moving average which comes to around Rs 49,000 levels, and breaking above which the next leg of the rally will head towards Rs 50,000-50,500 in the coming trading sessions. On the downside, it will take strong support at Rs 47,950 levels.

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