Experts feel that in the short term traders could look at shorting the metal for a target of 42,450.
India Gold June Futures witnessed profit-taking at higher levels on April 1 extending the decline for the fourth consecutive session. Experts feel that in the short term, traders could look at shorting the metal for a target of 42,450.
On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 222, or 0.52 percent, at Rs 42,734 per 10 gram at 09:30 hours. Silver futures on MCX gained 0.5 percent to Rs 39,729 per kg.
International Gold has given a breakdown below $1600 level after a four day of consolidation which is a sign for some exhaustion & correction can be expected.
On a quarterly basis, Gold has risen by about 4 percent in March quarter, largely on account of economic concerns after the COVID-19 outbreak.
From a technical perspective, $1580-$1555 holds strong support where upside $1595-$1622 will act as resistance which suggests gold may trade in a range of $1560-$1598 levels in the coming session, suggest experts.
“On the domestic front, MCX Gold June, on the hourly chart is trading below 20 as well as 50 Hourly Moving Averages which suggest a negative trend for short momentum,” Neha Qureshi, Technical Analyst, Reliance Commodities told Moneycontrol.
“Moreover, any breakdown below 43000 can take prices to 42600-42200 levels where upside resistance is at 43100-42400 levels. Intraday strategy: Gold June Sell in the range of 43000-43020 with 43200 as stop loss and target of 42450 levels,” she said.
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, Gold prices traded weak, but witnessed its sixth straight quarter of gains. Yet, the upward trajectory of gold remains in question as volatility caps daily moves at above $1,600 an ounce and Russia moves from big buyer to possible seller of bullion.
Major moving average 20, 50, 100-Days EMA are suggesting positive trades. Overall, the trend remains positive till the time 39500 holds on a closing basis but volatile sessions will be seen with some profit booking on rallies.
For the day 43000-43150 will act as resistance whereas 42750-42500 as supportsDisclaimer: The views and investment tips expressed by 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.