Gold Trend Analysis for 5 April 2021
It seems MCX Gold for the third straight week is likely to end on a bearish note. Already down by more than 3% W-o-W, the sentiment is negative amid withdrawals from investment demand. Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust fell for the 13th straight session. The 10Y bind yield has appreciated to 1.57% after Federal Reserve Chair Jerome Powell disappointed investors with his view on rising yields that pushed up the dollar and bond yields. Powell repeated his pledge to keep credit loose and said although the rise in yields was “notable”, he did not consider it a “disorderly” move.
Focus will shift to US nonfarm payrolls for February along with unemployment rate. The dollar index and 10Year bond yield is now entrant in focus list. The yellow metal is likely to stay under pressure since sentiment is weak in bullion space amid sharp rise in dollar index & bond yield in the US. MCX gold may find support near Rs. 43,900 – 43,600 in a short term. We recommend to short on every bounce. Positionally, for investors these are the best levels to start accumulation as gold has already fallen by 21% from an all-time high of Rs. 56,191.
Research Report by Anand Rathi
Research Analyst: Mr Jigar Trivedi, Research Analyst- Commodities Fundamental,
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