Indian Gold April futures slipped below Rs 40,100 on February 6 morning, tracking a muted trend in the international spot prices amid recovery in equity markets and strength in dollar index that fuelled risk-on sentiment.
On the MCX, April gold contracts were trading lower by Rs 106, or 0.26 percent, at Rs 40,094 per 10 gram at 0920 hours.
Gold and silver prices showed some recovery a February 5 after two days of a panic selloff. Gold tested $1,562 resistance level, while silver also flirted with $17.70 per troy ounce.
At MCX, gold almost tested Rs 40,300 and silver Rs 46,000 before reversing gains. But, prices couldn’t sustain at higher levels due to recovery in global equities and strength in the dollar index, experts say.
“After the dollar index crossed 98-mark again, selling is expected in both the precious metals in Thursday's session. Gold could test Rs 40,000- Rs 39,880. Now Rs 40,330 acts as major resistance. Silver could test Rs 45,500- Rs 45,400 and Rs 45,850-Rs 46,000 act as major resistance,” Manoj Jain, Director, India Nivesh Commodities, told Moneycontrol. Track live gold price here
Trading Strategy
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, gold traded flat to positive and is trading weak on February 6 as strong US economic data was offset by fears over a rapidly spreading coronavirus outbreak and its impact on the global economy.
After a long time, prices have closed below 20EMA, which is placed at 40,200, and is now showing signs of correction that can escalate further towards 50EMA (Rs 39,500).
RSI & MACD are signalling basing range moves. For the day, Rs 40,250-Rs 40,350 will act as resistance whereas Rs 40,025-Rs 39,900 as supports.
Expert: Sriram Iyer, Senior Research Analyst, Reliance Commodities
MCX Gold April traded in a narrow range after giving a sharp fall in the previous session but has bounced back after taking the support of Rs 39,900 levels.
Moreover, it is trading near 21-day moving average which is placed at Rs 40,170 levels and can act as resistance.
For International gold, $1,545 will hold support and upside $1,563 will act a strong resistance. It may trade in $1,546-$1,562 range.
Intraday strategy: MCX Gold April Sell in the range of Rs 40,150-Rs 40,170 with Rs 40,300 as stop loss and target of Rs 39,800 levels.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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