India Gold June futures on March 31 consolidate in a narrow range, but fears of economic fallout from the COVID-19 pandemic is likely to provide some support to the bullion.
The dollar held steady against its key rivals, having gained 0.8 percent in the previous session as investors braced for prolonged uncertainty and governments tightened lockdowns and launched monetary and fiscal measures to fight the virus, said a Reuters report.
On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 126, or 0.29 percent, at Rs 43,255 per 10 gram at 09:30 hours.
Experts are of the view that the yellow metal is likely to face selling pressure on every rise, but investors should deploy buy on dips approach. The next target for the yellow metal is likely to be in the range of 43500-44000.
Trading strategy:
Expert: Sriram Iyer, Senior Research Analyst from Reliance securities
International Gold is trading above $1,600 levels where immediate support holds at $1,608-$1,590 levels. However, it is taking resistance near $1,627-$1,635 which suggests gold may trade in a range of $1,608-$1,630 levels in the coming session.
MCX Gold June could trade in a range of 42,900-43,800 levels indicating a sideways momentum in the counter. Moreover, any breakdown below 42,900 can take prices to 42,400-42,180 levels.
Intraday strategy: Gold June Buy in the range of 43,000-43,020 with 42,850 as a stop loss and target of 43,500 levels.
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, Gold prices in Asia were down on Tuesday morning as stock markets gained. Prices of the yellow metal reached $1,645.3 overnight as investors reacted to the United States’ extension of COVID-19 restrictions to April 30 by seeking safe havens.
Major moving average 20, 50, 100-Days EMA are suggesting positive trades. Overall the trend remains positive till the time 39500 holds on a closing basis but volatile sessions will be seen with some profit booking on rallies.
For the day 43,875-44,150 will act as resistance whereas 43,550-43,200 as supports.
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