Gold price on MCX India traded lower on Wednesday, in line with international commodity markets as investors factored in the possibility of economic recovery amid easing of restrictions across the globe and rally in equity markets.
Extending sharp losses from the previous session, gold prices for June futures on the Multi Commodity Exchange fell by Rs 196, or 0.42%, to Rs 46,600 per 10 gm.
Gold futures for August also fell by Rs 60, or 0.13%, to Rs 46,498 per 10 gm.
Gold witnessed profit booking today in international commodity markets after snapping a three-session winning streak. As participants offloaded their holdings, Spot gold was unchanged at $1,727.65 per ounce, while US gold futures fell 0.1% to $1,732.20.
Meanwhile, lingering worries over US-China, continued civil unrest in US and hopes of more stimulus from major economies kep the losses in check, traders said.
Gold, which is often seen as a safe haven asset during times of political and financial uncertainty, has risen amid the conronavirus led uncertainingty. However, the yellow metal has traded off highs recently amid the rally in global equities with economies showing signs of recovery.
Expressing views on Gold's near term outlook, Anuj Gupta-DVP Commodities and Currencies Research, Angel Broking said," Some profit booking seems to be taking place in gold prices as expectation of more easing and stimulus packages may announce by the major economies. Although the recovery in global equity market curbs the gold prices. Safe heaven demand may fade out. We expect some more profit booking in gold rates."
On gold futures' near-term outlook, he added, "Traders can go for sell in gold around Rs 46,700 to 46,800 levels, with the stop loss of Rs 47,100, and for the target of Rs 46,000 levels. In the international market, gold may test $1710 soon."InterGlobe Aviation share price rises over 12% despite Rs 871 crore loss in Q4