India Gold February futures remain rangebound with a negative bias on January 9 following the remarks by the US President Donald Trump that eased the fears of a larger conflict with Iran.
Spot gold dropped nearly 1 percent to $1,559.22 per ounce. Prices had earlier soared to $1,610.90 in the session, their highest level since March 2013.
Donald Trump said Iranian missile strikes on bases in Iraq had not harmed any US troops, and that Tehran appeared to be standing down, said a Reuters report.
On the MCX, gold contracts for February were trading lower by Rs 18, or 0.04 percent, at Rs 40,092 per 10 gram at 0910 hours.
Gold hit a record high on Wednesday after Iran's attack on US army base in Iraq. In the international market, it tested $1,611 and silver prices were trading around $18.80. MCX Gold touched a record high of 41,293 and silver tested highs of 48,925.
Experts feel that Gold prices are likely to remain volatile and the upside remains capped around 40,200-40,350. Support for the yellow metal is placed at Rs 39,900-39,750.
Expert: Jateen Trivedi, Sr Research Analyst - Commodity & Currency, LKP Securities Ltd
On the daily chart Gold traded weak on the back of softening rhetoric by the United States and Iran relieved concerns of a larger military conflict. Gold registered one of the biggest falls from intraday highs of more than Rs 1,300.
20, 50, 100-Days EMA are signaling positive momentum. Prices can be in some profit booking mode but the bullish momentum is intact till the time they are above 39000 on a closing basis. For the day 40200-40350 will act as resistance whereas 39900-39750 as supports.
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February has given an all-time high level of 41293 levels and has corrected up to almost 900 points which suggests some consolidation momentum as prices have reached uncharted territory.
On the hourly chart, it has started to trade below 21 as well as 50 Hourly Moving Averages which indicates some weakness for upside momentum.
MCX Gold if sustain above 40500 levels then upside momentum may continue for 40,900-41,000 levels. Alternatively, downside momentum may continue below 40450 levels up to 40,300-40,150. International Gold could trade in $1550-$1575 levels.
Intraday strategy: MCX Gold February Buy in the range of 40,000-39,950 with 40,830 as a stop loss and target of 40,300 levels
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
