India Gold April futures bounced back on February 27 amid rising fears of coronavirus becoming a global pandemic after new cases surged in Italy and Iran, triggering a move away from riskier assets.
The number of new infections inside China - the source of the outbreak - was for the first time overtaken by fresh cases elsewhere, with Italy and Iran seeing the biggest rise, Reuters reported.
On the Multi Commodity Exchange, April gold contracts were trading higher by Rs 181, or 0.43 percent, at Rs 42,685 per 10 gram at 09:20 hrs.
Experts feel that Gold prices are likely to remain volatile due to volatility in global equities, weakness in the dollar index and strength in rupee.
The Indian rupee opened flat at 71.65 per dollar on Thursday versus the previous close 71.66. The currency settled for the day higher by 20 paise at 71.66 against the US dollar on Wednesday.
Gold slipped below $1,640 per troy ounce and silver prices also slipped below $18 per troy ounce on Wednesday. At MCX, Gold prices tested lows of 42,100 and silver prices also test lows of 46,348.
“Due to extreme volatility in global equities, weakness in the dollar index and strength in rupee we expect both the precious metals remain volatile on Thursday,” Manoj Jain, Director, India Nivesh Commodities told Moneycontrol.
“Gold is expected to trade in the range of 42,100-42,770. Silver is expected to trad in the range of 46,200-47,100,” he said.Track live gold price here
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, Gold prices rose on Thursday as fears of a pandemic heightened after coronavirus infections surged in Italy and Iran, triggering a move away from riskier assets.
Overall, the trend remains positive. RSI & MACD are signalling trend to be strong. Some profit booking can be on cards from higher levels are indicated on the charts. For the day 42,750-42,925 will act as resistance whereas 42,600-42,325 as supports.
Expert: Hareesh V, Head of Commodity, Geojit Financial Services
Gold’s haven demand may edge higher, as investors sought safety in precious metals on rising fears of a pandemic. Weak global equities and a correction in the US Dollar would add further support to prices. At the same time, moderate physical market activities and chances of higher-level profit booking may dent major upsides.
Technical outlook: As long as prices stay above $1,620, expect rallies to continue with stiff resistance seen at $1,662 followed by $1,695 levels. A close below $1,595 is required to negate the bullish outlook.
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