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Below are Views On Gold commentary 31 May 2021 By Mr. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services

“Gold prices traded higher, hovering around the key $1,900-level after U.S. consumer prices were reported better than expected in April hence supporting the metal as an inflation hedge. U.S. consumer prices surged in April, with a measure of underlying inflation blowing past the Federal Reserve's 2% target. The White House last week sent Congress a $6 trillion budget plan which would focus on infrastructure, education and combating climate change. This is budget plan is considered with an objective to support the economy although, it also increases the markets worry regarding the increasing debt. In this data heavy week, market participants today will focus on GDP data on domestic front. Focus will also be on the manufacturing and Service PMI data from major economies and U.S. non-farm payroll data scheduled this later week.  Broader range on COMEX could be between $1898- 1925 and on the domestic front prices could hover in the range of Rs 49,100- 49,630.”

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