Gold price today: Yellow metal sees profit booking amid volatile equity markets

Gold, Silver prices in India on July 16: Gold price in India saw profit booking on Thursday as equity market turned volatile tracking global indices. Gold prices have been trading near record high amid rising coronavirus cases and ongoing tensions between the US and China.

Gold futures on MCX were trading 52 points higher at 49,211 per 10 gm today against the previous close of 49,159 per 10 gm, after hitting a lifetime high of 49,348 in the previous week. Gold August Futures today touched an intraday high of 49,222 and a low of 49,103 today, after opening at 49,104 per 10 gm.

Silver futures too gained Rs 103 to trade at 53,161 per kg today. Gold and silver prices in the commodity market have been scaling fresh highs as traders shunned risk and sought safe haven during coronavirus crisis.

Concerns over the economic impact of rising coronavirus infections in many countries, especially in the two largest economies-US and China have driven investment inflows into safe-haven assets like gold.

The yellow metal traded a bit lower on Thursday in overseas markets, although, steadied above its eight-year high at $1,800 per ounce hit last Tuesday. Spot gold price traded 1.51% lower at $1,809.80 today while Comex Gold was trading 0.50% lower at 1,810.

Coronavirus has infected 136.96 lakh people worldwide and killed 5.86 lakh so far and cases continue to rise in the United States, with many states temporarily halting the reopening of their economies to stem the outbreak.

In terms of London Spot gold's technical outlook, mild resistance is seen at $1818 which needs to be cleared for the continuation of further upticks for the day, said Geojit Financial in its note and added that the next targets are seen at $1830 followed by $1882. However, a direct drop below $1770 could negate any buying expectations and take prices lower.

For MCX Gold Futures, the brokerage estimated the resistance at Rs 49,300/51,500 and support at Rs 48,540.

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