India Gold April futures were rangebound with a negative bias on Friday amid strong Dollar, but mounting coronavirus death toll supported safe-haven buying.
The Chinese province at the center of the coronavirus outbreak reported a record rise in deaths and thousands of more infections using a broader definition on Thursday, said a Reuters report.
Global investors were spooked after the head of the Revolutionary Guards said that Iran was ready to strike the United States and Israel if they give it any reason to do so, it said. The risk-averse sentiment in the market supported bullion.
On MCX, April gold contracts were trading lower by Rs70, or 0.17 percent, at Rs 40,586 per 10 gram at 09:20 hours.
Gold and silver prices rebounded on Thursday after thousands of new cases of coronavirus reported in China, but strength in the dollar index and upbeat U.S. unemployment claims Data limits gain.
Investors should use dips to buy Gold for a target of 40,900, suggest experts. “We expect both the precious metals remain volatile and buy on dips strategy are working in both the precious metals,” Manoj Jain, Director, India Nivesh Commodities told Moneycontrol.
“Gold can be bought around 40450 with SL of 40300 for the target of 40800 and silver can be bought around 45500 with SL of 45200 for the target of 46000,” he said.
Trading Strategy:
Expert: Sriram Iyer, Senior Research Analyst, Reliance Commodities
MCX Gold April contract has been moving higher steadily higher from the last few days which will keep bias on the upside.
One can use buy on dips strategy in the current environment. LBMA Gold spot is in the higher high higher low formation and expected to trade in the range of $1568 and 1585 levels.
Intraday strategy: MCX Gold April buy on dips towards 40700-40660 with 40550 as stop loss and target of 40900.
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, Gold traded flat to positive, prices held steady near a one-week high on Friday, as a mounting coronavirus death toll supported safe-haven buying, while a stronger dollar kept a lid on gains.
Overall, the trend remains positive with some overhang at higher levels of 41000-41300. RSI & MACD are signaling trend to be volatile. For the day 40700-40850 will act as resistance whereas 40575- 40400 as supports.
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