Gold price today: Yellow metal consolidates around 42K; may retest 42,440

India Gold April futures consolidated with a positive bias just below 42,000 on March 3 but experts believe that the volatility may continue even though the larger trend continues to remain positive

International spot prices rose as traders bet on the interest rate cut by global central banks to mitigate the economic impact from the fast-spreading coronavirus outbreak, Reuters reported.

Traders on Monday piled into bets that the US Federal Reserve will deliver a big dose of stimulus starting this month amid concerns over the economic impact and indications that global central banks are readying a monetary rescue, it said.

On the Multi Commodity Exchange (MCX), April gold contracts were trading higher by Rs 2, or 0.01 percent, at Rs 41,958 per 10 gram at 09:20 hrs.

International Gold and silver prices gained around 1 percent on Monday in an extremely volatile session. Gold made a high of $1,610 and silver also tested $17 per troy ounce in the international market.

But, after recovery in the US equity market both the precious metals witness profit-taking. MCX Gold made a high of 42,343 and silver made a high of 45,440.

“Both the precious metals get support in the domestic market due to weakness in rupee. We expect the volatility to continue in both the precious metals due to the rising fear of coronavirus in India,” Manoj Jain, Director, IndiaNivesh Commodities told Moneycontrol.

“Gold is expected to be traded in the range of 41,660-42,440. Silver is also expected to be traded in the range of 44,500-45,650,” he said.

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

On the daily chart, Gold prices are trading in the positive on Tuesday morning on increasing bets of an interest rate cut by global central banks to mitigate the economic impact from the fast-spreading coronavirus outbreak.

Overall the trend remains positive. RSI and MACD are signalling a strong trend. Some profit-booking may take place at higher levels. For the day, 42,050-42,300 will act as resistance, whereas 41,825-41,600 as supports.