Technically Gold market is under short covering as market has witnessed drop in open interest by 2.88% to settled at 13723 while prices up 7 rupees.
Now MCX Gold is getting support at 47727 and below same could see a test of 47511 levels, and resistance is now likely to be seen at 48224, a move above could see prices testing 48505.
Gold yesterday settled up by 0.01% at 47944 as surging coronavirus infections intensified concerns over a delay in global economic recovery and prompted investors to seek the safe-haven metal.
Market participants also keeping an eye on developments in Hong Kong after details of a new security law for the territory showed Beijing will have overarching powers over its enforcement.
Despite China claiming that the rise in coronavirus cases reported earlier in the week is currently under control, several states in America have seen marked spikes in new coronavirus cases.
The massive stimulus measures announced by global central banks and governments notwithstanding, there are concerns the economic recovery may not be any significantly quick, and this makes gold a strong safe-haven bet.
Rising coronavirus cases in the United States dented investor sentiment towards riskier assets, sending U.S. stock futures lower. SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 2.03% to 1,159.31 tonnes on Friday from 1,136.22 tonnes on Thursday.
Speculators increased their bullish positions in COMEX gold and silver contracts in the week to June 16, the U.S. Commodity Futures Trading Commission (CFTC) said.The physical side, gold demand sagged across major Asian hubs as prices resurged last week, although there were expectations that the market may be starting to recover.
--Gold trading range for the day is 47511-48505.
--Gold prices rose to their highest level surging coronavirus infections intensified concerns over a delay in global economic recovery.
--The massive stimulus measures announced by global central banks, there are concerns the economic recovery may not be any significantly quick.
--SPDR Gold Trust , said its holdings rose 2.03% to 1,159.31 tonnes on Friday from 1,136.22 tonnes on Thursday.
Courtesy: Kedia Commodities