Gold prices were flat on Tuesday as the US dollar held firm at a three-week high scaled in the previous session and yields climbed, while investors refrained from big bets ahead of Russia-Ukraine peace talks starting later in the day.
On the Multi-Commodity Exchange (MCX), gold contracts were down 0.66 percent at Rs 51,233 for 10 gram at 9.34 am and silver slipped 0.54 percent to Rs 67,734 a kilogram.
Bond yields retreated marginally in the previous session supporting precious metals trading in a range for more than a week. In the previous trading sessions, prices were hovering above the lower range where they may get buying support. Gold has support at Rs 51200 and resistance at Rs 51800 and above this it may move towards Rs 52200 levels. Silver has support at Rs 67500 and its prices may move towards the upper trading range at Rs 69000. Economic data from the US front, Jolts job opening, and CB Consumer Confidence could be key triggers for bullion prices in today's session, said Nirpendra Yadav, senior commodity research analyst at Swastijka Investmart.
Trading Strategy
Vidit Garg, director of MyGoldKart
Spot gold was down yesterday after yields touched 3-year high and made riskier assets less attractive and on expectations of breakthrough from Russia-Ukraine talks today at Turkey. Technically, gold needs to break $1920 or $1942 for clear direction and movement. RSI on intraday charts has not been able to cross 40 since yesterday which indicates that bears have got the upper hand in this market but to continue their control they need strong trading volumes below $1920. Major moving averages are indicating resistances at $1937 and $1941 on intraday charts.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices plunged on Monday amid a sharp decline in crude oil prices and rising US bond yields. Both precious metals settled on a weaker note in international markets. The metals also settled on a weaker note in domestic markets. We expect gold and silver to show further weakness in today’s session and could test support level of $1900 per troy ounce and $24.84 per troy ounce again. Gold has support at $1922-1900 per troy ounce and resistance at $1955-1968 per troy ounce while silver has support at $25.00-24.84 per troy ounce and resistance at $25.55-25.80 per troy ounce.
At MCX, gold has support at Rs 51400-51220 and resistance at Rs 51720-51880 while silver has support at Rs 67700-67220 and resistance at Rs 68660-69100. We suggest selling gold around Rs 51600 with a stop loss of Rs 51880 on a closing basis for target of Rs 51220 and silver around Rs 68300 with a stop loss of Rs 68800 on a closing basis for target of Rs 67500.
Ravi Singh, vice president and head of research, ShareIndia
Gold is showing profit booking on account of gains in US bond yields and strength in the dollar. However, gains in global energy prices and data on US pending home sales, durable goods and core durable goods orders released last week supported precious metals. Gold prices may show some more correction this week.
Buy zone above Rs 51700 for target of Rs 52000
Sell zone below Rs 51300 for target of Rs 51000
Amit Khare, AVP- research commodities, Ganganagar Commodity
The market is very volatile nowadays due to the Russia-Ukraine crisis. As per the technical chart, gold and silver are now showing weakness, momentum indicator RSI is also signalling the same on the hourly and daily charts. So traders are advised to create fresh sell positions near given resistance levels and traders should focus on important technical levels.
April Gold closing price Rs 51571, Support 1 - Rs 51300, Support 2 - Rs 51000, Resistance 1 - Rs 51650, Resistance 2 - Rs 51800.
May Silver closing price Rs 68105, Support 1 - Rs 67700, Support 2 - Rs 67000, Resistance 1 - Rs 68300, Resistance 2 - Rs 68800.
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