Indian Gold April Futures was trading in the green on Thursday tracking a positive trend seen in the international spot prices. Both Gold and silver plunged on Wednesday amid a rally in the dollar index and U.S. 10 years Bond yields.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading higher by 0.26 percent at Rs 46,359 for 10 grams at 1030 hours. March silver futures were trading 0.15 percent higher at Rs 69,332 a kilogram.
Experts are of the view that both Gold and Silver could remain volatile. The yellow metal has crucial support near Rs 46,000 while Silver can be bought on dips for a target of Rs 70,000.
Gold and silver plunged again on Wednesday amid a rally in the dollar index and U.S. 10 years Bond yields. Gold slipped to an eight-month loss in the international markets.
Gold April futures contract settled at $1772.80 per troy ounce while Silver March futures contract settled at $27.30 per troy ounce. Both the precious metals settled on a weaker note in the domestic markets.
Strength in the global equities and rising U.S. bond yields also push both the precious metals lower. Chinese markets were closed due to the Lunar New year but will reopen from Thursday.
Bitcoin also hit another record high on Wednesday and traded well above $50,000. The keener investor interest in Bitcoin and other cryptocurrencies could be taking away some of the investors from historical safe-haven assets gold and silver, suggest experts.
“We expect the precious metal prices to remain trade under pressure amid rising bond yields and strength in the dollar index. Gold prices could test $1750 per troy ounce in the short term,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, Gold has support at 46000-45820 and resistance at 46480-46700 and silver is having support at 68800-68300 and resistance at 69800-70400 levels. We suggest buying in the silver around 68900 with the stop loss of 68300 for the target of 70000,” he said.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold extended its slide to the fifth session on Wednesday, dipping to its lowest in more than two months as bets for an economic recovery boosted the dollar and benchmark U.S. Treasury yields.
Domestic gold and silver prices ended lower on Wednesday. Growing optimism for a $1.9 trillion U.S. stimulus plan and rising inflation pushed the yields up which in turn lifted the dollar.
Domestic gold and silver could trade mixed this Thursday morning, tracking the overseas markets.
Technically, MCX Gold April ended on a negative note where prices could see a bearish momentum upto 46050-45880 levels. Resistance is at 46400-46700 levels.
MCX Silver March below 69500 levels indicating a sideways to marginal downside momentum up to 68700-67900 levels. Resistance is at 69550-70700 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades higher near $1782/oz after a 1.5% decline yesterday when it slumped to Nov.2020 lows. Gold has inched up as US bond yields retreated from a 1-year high while FOMC minutes showed that the central bank may keep monetary policy accommodative.
However, weighing on price is reduced safe-haven demand and continuing ETF outflows.
Gold is seeing some recovery after the recent sell-off however the momentum may remain weak unless price rescales $1800/oz or there is a sharp correction in the US dollar.Disclaimer
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