Kedia Securities says gold stabilized on Sunday by -0.29% to Rs 48,404 as fairly strong stock markets and a stable dollar in continued optimism about the economic recovery dampened demand for the safe haven product.
In US economic news, a report released by the National Association of Realtors showed an unexpected drop in sales of existing homes in April. NAR said existing home sales fell 2.7% to an annual rate of 5.85 million in April after falling 3.7% to a rate of 6.01 million in March. Widespread lockdowns coupled with rising domestic prices choked the physical gold market in India as it grappled with a fierce COVID-19 wave, forcing dealers to offer the biggest discounts in eight months . Dealerships offered discounts of up to $ 10 an ounce, the highest since mid-September 2020, on official domestic prices – including 10.75% import taxes and 10.75% import taxes. 3% – compared to the $ 5 reduction last week.
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Banks and traders offer imported gold in April at a reduced price, as world prices were lower then. China, the largest consumer, saw stable demand, with premiums fluctuating little between $ 7 and $ 10 per ounce compared to benchmark spot gold prices. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,042.92 tonnes on Friday from 1,037.09 tonnes on Thursday. Technically the market is on a long sell-off as the market saw open interest decline of -6.26% to settle at 5,721 while prices drop -140 rupees, now gold is receiving support at Rs 48,200 and below the same could see a test of Rs 47,995 levels, and resistance is now likely to be seen at Rs 48,640, a move above could see prices test Rs 48,875, explains Kedia Securities.
Gold’s trading range for the day is Rs 47,995 – Rs 48,875. Gold stabilized lower as fairly strong stock markets and a stable dollar in continued optimism about the economic recovery dampened the downturn. request. A report released by the National Association of Realtors showed an unexpected drop in sales of existing homes in April. Locks cripple Indian market as discounts hit 8-month high, says Kedia Securities