On Thursday (May 28, 2020), gold prices in India defied global trends and fell in the futures market by 0.15% to 46,460 per 10 gm.
Gold prices in the previous session on the MCX after recording a steep fall jumped towards the end of the session by as much as 0.45% or Rs. 209 to hit levels of Rs. 46531 per 10 gm. In the bullion market, gold prices retreated lower by Rs. 509 to Rs. 46,290 per 10 gm on Wednesday.
International gold rates
In the international markets investors gold gains as stimulus measures and the US-China spat over Hong Kong security law is propping up gold price. In the previous session, gold hit 2-week low as equities managed to hold on to the gains.
Also, after consumer confidence data in the US nudged higher in the US, housing data has also come in as positive, thus reducing safe haven appeal of the previous yellow metal.
On the other hand, on Wednesday the European Union doled out a bail out package worth $826.13 billion to stimulate the economy out of coronavirus led slump.
Japan also approved of a fresh stimulus to the tune of $1.1 trillion. As also reports indicate that India would also need to infuse $20 billion into its state-run banks.
Outlook for gold
In the near term, experts foresee gold to see some more correction, though at lower levels it shall remain supported on account of stimulus measures as also the rising US-China tensions. Prices are expected to trade in the range of Rs 46,020-46,685