Gold rate today
The US dollar traded higher as an increase in coronavirus cases in the country undermined hopes for a quick turnaround in the pandemic-hit economy.
SPDR Gold Trust ETF said its holdings rose 0.65 per cent to 1,176.85 tonnes on Wednesday from 1,169.25 tonnes on Tuesday.
Sriram Iyer, Senior Research Analyst at Reliance Securities said, “Upside in gold remained limited as US dollar has started firm this Thursday morning in Asian trade, but downside remained limited amid safe haven and investment demand for the metals.”
The domestic bullion ended lower on Wednesday tracking weak overseas prices and stronger rupee.
Technically, LBMA GOLD Spot had retreated from $1,779 levels and gave a sharp correction up to $1,760 levels indicating an exhaustion of prices at higher levels which signifies sideways momentum to marginal downside direction up to $1,761-$1,752 levels. Resistance holds at $1,775 levels, Iyer said.
According to Reuters, spot gold prices in the international market may fall into a range of $1,741-$1,750 per ounce, as suggested by a rising trendline and a projection analysis.
An upward wave C from $1,703.83 could have completed around a resistance at $1,778, its 100 per cent projection level. The trendline indicates a further fall.