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Last Updated : Feb 11, 2020 10:04 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal drops as equities shine; deploy buy on dips for the target of 40,700

On the MCX, April gold contracts were trading lower by Rs 211, or 0.52 percent, at Rs 40,468 per 10 gram at 0920 hours.


India Gold April futures fell on February 11 as investors preferred to book profits at higher levels amid a rise in equities as well as US Dollar. Investors can look at initiating buy at lower levels towards 40,500 for a target of 40,700, suggest experts.

International Gold price held steady after climbing to a one-week peak in the previous session, as concerns about the coronavirus epidemic that has claimed more than 1,000 lives in China offset an uptick in the equities, said a Reuters report.

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The US dollar and Japanese yen were in demand as worries about the spread of the coronavirus sent investors to safe harbours, it said.

On the MCX, April gold contracts were trading lower by Rs 211, or 0.52 percent, at Rs 40,468 per 10 gram at 0920 hours.

Track live gold price here

Gold and silver traded sideways on Monday. The Spot Gold closed at $1,572 and silver closed at $17.77 per troy ounce in the international market. At MCX, Gold and silver prices settled with minor gains around 40,700 and 46,200 respectively.

“Fear of coronavirus is supporting prices of both the precious metals but record gains in dollar index limits gains in precious metals. We expect both precious metals to remain volatile and expect then to hold support levels of $1,562 and $17.70 per troy ounce in the international market,” Manoj Jain, Director, India Nivesh Commodities told Moneycontrol.

“Lower level buying is expected in both precious metals until it trades above 40,330 and 45,850 in the domestic market. Gold has support at 40,330 and resistance at 40,850. Silver has support at 45,850 and resistance at 46,400-46,600,” he said.

Trading Strategy:

Expert: Sriram Iyer, Senior Research Analyst, Reliance Commodities

MCX Gold April is trading in Triangle formation pattern where prices have bounced back from a lower band which is placed at 40,580 levels. Moreover, it has sustained above its 21 as well as 50-Daily Moving Averages which suggest a positive trend in the counter.

However, 40,500 level holds support and 40,750 will act as immediate resistance. For international gold, $1,560 will hold support and $1,580 will act as a strong resistance. It may trade in a $1,560-$1,580 range.


Intraday strategy: Buy MCX Gold April in the range of 40,500-40,450 with stop loss of 40,400 and for the target of 40,710 levels.

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

Gold prices traded slightly weak on Tuesday morning after climbing to a one-week peak in the previous session, as concerns about the coronavirus epidemic that has claimed more than 1,000 lives in China offset an uptick in equities.

Overall the trend remains positive with some overhang at higher levels of 41,000-41,300. RSI & MACD are signalling volatility. For the day, 40,700-40,875 will act as resistance whereas 40,550-40,375 will act as support.

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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First Published on Feb 11, 2020 10:04 am
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