Gold price today: Yellow metal eases; buy on dips for a target of 47000

India Gold June futures slipped on April 16 but fears of a deep global recession due to the novel coronavirus outbreak will keep the yellow metal trending north. Experts feel that any dips should be used for an intermediate target of Rs 47000 per 10 gm.

On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 0.39 percent at Rs 46,530 per 10 gram at 0930 hours. Silver futures were down 1 percent to Rs 43,590 per kg.

Gold and silver prices gained on Wednesday in the domestic market. Gold prices reached to fresh highs of 46785 and settled above 46500 levels. Silver also settled above 44000 levels.

At Comex division some profit-taking is seen in both the precious metals at higher levels due to strength in the dollar index. Gold future slipped below $1750 per troy ounce and silver also slipped below $15.50 per troy ounce.

“Weakness in rupee supports prices of both the precious metals in the domestic market. Downbeat US retail sales, core retail sales, Empire State manufacturing index and industrial production data continue to support prices of both the precious metals,” Manoj Jain, the independent market expert told Moneycontrol.

“We expect both the precious metals remain firm and any downside correction in gold towards 46330 will be an opportunity to buy again with a strict stop loss of 46000 for upside targets of 46800-47100. Silver can also buy around 43600 with a strict stop loss of 43100 for upside targets of 44100-44650,” he said.

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Trading Strategy:

Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities

Gold prices could continue to move higher amid rising fears of a deep global recession due to the novel coronavirus outbreak.

LBMA Gold spot made a recent high of $1746 levels showing some sideways momentum is likely to trade in a range of $1705-$1750 in the coming session. However, downside immediate support is at $1708-$1680 levels.

However, MCX Gold holds a resistance near 46700-46800 levels indicating some exhaustion which will likely keep prices to trade in a range of 46000-46800 levels.

Intraday Gold holds support near 45700-46000 levels & upside resistance at 46600-46800 levels in the coming session. However, we still remain bullish for the yellow metal and should buy on dips.

The strategy for Gold is to Buy Gold June 46100-46120 with a Stop loss at 46000 and with a target of 46450.

Expert:  Jateen Trivedi, Senior Research Analyst, LKP Securities

On the daily chart, Gold prices inched higher on Thursday in Comex as fears of a deep global recession due to the novel coronavirus outbreak were heightened by bleak U.S. economic data, while a stronger dollar limited the metal's gains.

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. For the day 46700-46875 will act as resistance whereas 46550-46400 as supports.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

COMEX gold trades moderately higher near $1745/oz after a 1.6% decline yesterday. Gold fell yesterday as the US dollar index was seen as the preferred asset class amid increasing virus cases and disappointing economic data.

However, supporting price is robust investor buying as is evident from rising ETF holdings. Gold may witness choppy trade as market players assess increasing virus cases against discussions to ease restrictions in some countries however general bias may be on the upside due to global growth worries.

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