In Q1 of FY21, the Spot Gold prices posted gains, rallying almost 13% and multi-year high of 1779.06 in June. Taking cues from firmness in international markets, MCX Gold also witness gains of almost 12 percent in Q1 FY21 and hit its life-time high of Rs.48589/10 gms in June.
Going ahead, any escalation in the ongoing geopolitical tensions or any negative news regarding coronavirus will boost safe-haven demand for gold and once it cross and sustains above 48600 we can expect a surge towards 49750-50600. Meanwhile, dips will find buying support until 47000 holds and prices will again bounce back towards 48600 levels.”
The author of this article is Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
The views and opinions expressed are not of IIFL Securities, indiainfoline.com