Gold Price Today, 1 June 2021: Gold nears Rs 50,000 on positive global cues; check support, resistance levels

Gold prices need to trade above 49550 levels consistently to extend the gains towards 49668/49750 levels. Image: Reuters

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold and silver prices were trading higher in India on Tuesday, on the back of positive international trends, where gold surged to a near five-month high of $1,914.26 on a weaker US dollar and inflation concerns. On Multi Commodity Exchange, gold August futures were trading Rs 134 or 0.23 per cent up at Rs 49,484 per 10 gram, as against the previous close of Rs 49,349. Silver July futures were ruling at Rs 72,668 per kg, up Rs 800 or one per cent on MCX. Silver futures ended at Rs 71,898 pe kg in the previous session. Globally, spot gold was up 0.2 per cent at $1,911.45 per ounce. The dollar index was down 0.26% against its rivals at 89.757. Among other precious metals, silver gained 0.6 per cent to $28.22 per ounce while platinum climbed 0.5 per cent to $1,192.22, according to Reuters.

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

The subdued dollar is supporting the gold prices. The dollar remains on the back foot as hopes of further stimulus and steady vaccinations in the West, improving the demand for gold. The only uncertainty is the Federal Reserve’s next move amid increasing inflation. Also, this week’s US NFP data if the headline US jobs figures print upbeat data, then traders may have an additional reason to believe that Fed may hint at rate hikes sooner than expected, in turn underpinning the US dollar and dragging gold prices. In MCX Gold, prices have opened with a positive gap today. Prices need to trade above 49550 levels consistently to extend the gains towards 49668/49750 levels. Weakness below 49400 will trigger a dip towards 49245. A daily close below this level will trigger further downside towards 48900 levels in the counter during the coming sessions.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold has risen above $1900 as the Federal Reserve is not ready to tighten its ultra-loose monetary policy even as inflation pressures continue to rise. Gold market is benefiting as real interest rates remain in historically low negative territory. A glance at US Treasury yields makes it clear that US Fed is in no hurry to change its stance. Gold’s next move will come this Friday when the U.S. Labor Department releases its nonfarm payrolls report for May. A disappointing nonfarm payroll could push gold prices further upside while better than expected numbers could see US dollar and yields pivot higher. In MCX, Gold has just entered the overbought zone around 69.58 and was underperforming compared to COMEX due to strong Indian rupee. Next resistance comes around 49,800 which was the level last seen in Jan 2021. Major support comes at 48,200 and we would advocate buy on dips and any long position at current juncture should be held with a strict stoploss of 48,800 where the 200 day moving average is.

NS Ramaswamy, Head of Commodities, Ventura Securities

We expect the MCX Gold Aug prices to trade positive for intraday. The RSI indicator on the daily chart is suggesting the strength in momentum on the upside. Also, prices have managed to hold above the key averages from the last few trading sessions. We expect MCX GOLD Aug prices to reach the 50,000 level in the coming sessions. On the downside, the 48,800 level will be the key immediate support for the prices. On the Comex front, Gold prices are holding above the key level of $1900/ounce. As long as prices are above this level, they are likely to head towards $2000 level in coming sessions.

Ravindra Rao,CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades marginally higher by 0.35% near $1912/oz after a 0.4% gain on Friday. Gold continues to hold above $1900/oz as Fed and other central banks emphasize on continuing with loose monetary policy. However, ETF outflows and weaker demand in India amid continuing virus related restrictions might cap the gains. Gold has continued to hold above $1900/oz however any sustained rise may be challenged by pause in US dollar index fall.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)