Gold may see some profit booking as a softening of the rhetoric that the US and Iran have allayed fears about a major military conflict, SMC Global Securities said in a statement.” Gold can dip down to 39,800 while taking resistance near 40,300 while silver can test at 47,000 while taking resistance near 47,500,” the brokerage said. Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell by 1.05% to 886.81 tons on Wednesday, she added.
Gold prices soared to a record high of 41,293 per 10 grams in the previous session in India after Iran retaliated for a US drone strike that killed an Iranian military officer last week, raising fears of rising Middle East tensions. Next on the Gold Trader Watch: Release of U.S. employment data by the Labor Department on Friday. Gold has made a strong start to the year, driven by rising hostilities in the Middle East. Prices have seen new highs in India over the past week in the wake of a global rally and a rupee decline against the US dollar. India imports most of its gold requirements. Prices on domestic markets include 12.5% import duty and 3% GST. Gold prices rose by about 25% in domestic markets last year, lifted by a global rally in the midst of US-China trade tensions, bribing and easing the US Federal Reserve’s monetary policy.