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Last Updated : Mar 20, 2020 10:37 AM IST | Source:

Gold price today: Yellow metal above Rs 40,000, may retest 40,500

Experts say the volatility is likely to continue but investors can use the dips to buy the yellow metal with an initial target of Rs 40,500.

India’s gold price for April rose above the important Rs 40,000-mark per 10 gm on March 20, tracking gains in international market. The precious metal, however, could be looking at a second weekly drop as investors are likely to continue booking profits at higher levels.

The global economy is already in a recession as the hit to economic activity from the virus has become more widespread, according to economists polled by Reuters amid a raft of central bank stimulus actions this week.

On the Multi Commodity Exchange (MCX), April gold contracts were trading higher by Rs 180, or 0.45 percent, at Rs 40,011 per 10 gram at 0920 hours.


Gold and silver prices rallied on March 19 after US initial jobless claims reached 2,81,000, highest since 2017 but strong gains in the US dollar index capped the upside.

International gold is holding at $1,450 per troy ounce and silver also held on to $11.80 per troy ounce.

On the domestic front, gold prices held onto Rs 39,500 levels per 10 gm and silver prices test Rs 35,000 level due to weakness in the rupee.

Experts say the volatility is likely to continue but investors can use dips to buy gold with an initial target of Rs 40,500.

“We expect both the precious metals to remain volatile today due to weekend session. Gold is expected to trade in the range of $1,450-1,500 per troy ounce and silver is expected to be traded in the range of $11.70-12.70 per troy ounce,” Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.

“At MCX, gold prices are expected to be traded in the range of Rs 39,200-40,500 and silver is expected to be traded in the range of Rs 34,000-36,300 levels,” he said.

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Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities

On the daily chart, gold traded positive after a gap down opening on March 19.

Gold prices were trading positive on March 20 but the metal was on track to post its second weekly drop due to a rush for cash amid the widening economic fallout of the coronavirus outbreak.

Major moving averages-- 20, 50, 100-day EMAs--are suggesting that profit-booking can continue as the markets try to cover margin globally on the back of heavy weakness in the equity markets.

Overall, the trend remains positive till the time Rs 39,500 holds on a closing basis but selling will be seen at higher levels. For the day Rs 40,200-40,550 will act as resistance and Rs 39,950-39,650 as supports.

Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.

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First Published on Mar 20, 2020 09:51 am
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