Profit booking expected in gold as safe haven demand fades out
Published On: Monday, June 8, 2020 | By: Team KnowMyStock
A sharp fall in gold prices this past week took investors by surprise but according to experts, it was expected. Gold prices enjoy an inverse relationship with equities, which have been rallying of late on hopes that the global economic recovery from the coronavirus crisis will be faster than expected. A sharp drop in the US unemployment rate in May and solid PMI readings in some of the Asian economies have weakened the safe-haven appeal of the yellow metal. In India, lockdown restrictions have lifted to a large extent, with shopping malls, hotels, and restaurants opening in large parts of the country from today. This has eased concerns over the impact of coronavirus pandemic on the economy, thus somewhat diminishing the appeal of safe-haven gold.
"We are expecting some profit booking in gold as safe-haven demand fades out. From a weekly perspective, the yellow metal may test the Rs 45,800-Rs 45,500 price levels on MCX and $ 1,690 per ounce mark in international market,” said experts.
Tags: gold price
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