Below is the Quote on Gold hitting fresh life high by Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
“The market sentiment are cautious on fast spreading of coronavirus around the global and concern of the second wave of infections. Also, there are worries over reigniting US-China trade war, giving a boost to safe-haven demand for gold. Today, the MCX Gold has hit a fresh all time high of Rs.48,982/10 gms and is hovering around Rs 48910/10 gms. At the same time, MCX silver continued to trade close to all time high of 50000.
Currently the recent high in gold is acting as a crucial resistance and we may see small correction in prices till 47500/47000. However, the ongoing geopolitical tensions will boost safe-haven demand for gold and once it cross and sustains above 49000 then 49750-50600 is expected. Dips will find buying support until 47000 holds and prices will again bounce back towards 48500/49000 levels.
While in silver, MCX Sep prices will test its immediate resistance between 51235-51500 areas. The counter needs to trade above these areas for a breakout towards 52400/54000 areas. Failure to trade above 51500 will trigger a correction towards 49750/48800 areas”