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Gold rate today: Yellow metal surges over 1%; may rise to Rs 47,600 level

Gold rate today: Yellow metal surges over 1%; may rise to Rs 47,600 level

Gold rate today: Yellow metal surges over 1%; may rise to Rs 47,600 level
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By Ankit Gohel  Jun 11, 2020 12:04:08 PM IST (Published)

Gold prices in India rose over 1 percent on the Multi Commodity Exchange (MCX) Thursday on safe-haven buying after the US Federal Reserve kept interest rates unchanged while presenting a gloomy outlook on the economy, analysts said.

Gold prices in India rose over 1 percent on the Multi Commodity Exchange (MCX) Thursday on safe-haven buying after the US Federal Reserve kept interest rates unchanged while presenting a gloomy outlook on the economy, analysts said.

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At 12:00 pm, gold futures for August delivery surged 1 percent or Rs 466 to Rs 47,092 per 10 grams as against the previous close of Rs 46,626 and opening price of Rs 46,750 on the MCX. Silver futures traded 1.32 percent or Rs 636 higher at Rs 48,720 per kg. The prices opened at Rs 48,650 as compared to the previous close of Rs 48,084 per kg.
“Gold prices are trading on a positive note as the US Federal Reserve kept interest rates unchanged. Along with the rate decision, the US Fed projected that the economy will shrink 6.5 percent in 2020, and this projection supports the safe-haven demand for gold,” said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.
The US central bank repeated its commitment from the April meeting that it “expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.”
Weakness in the dollar and low bond yields may also support the gold prices.
In the global market, gold eased as investors booked profits after prices rose to a more than a one-week high on bleak economic projections from the US Federal Reserve.
Spot gold was down 0.2 percent to $1,732.39 per ounce by 0329 GMT, after hitting its highest level since June 2 at $1,739.68 earlier in the session. US gold futures climbed 1.2 percent to $1,741.80.
“For an intraday perspective, traders can buy gold at 47,000 levels, with the stop-loss of 46,750, for the target of 47,600 levels. In the international market, gold may test $1,750 levels soon,” Gupta said.
Meanwhile, the Indian rupee traded lower against the US dollar while the domestic equity market also reeled under pressure.
 
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