India Gold April futures rose on March 30 tracking gains in the international spot prices as COVID-19 related economic damage has raised concerns of a prolonged recession.
"It is clear that we have entered a recession that will be worse than the one witnessed in 2009 following the global financial crisis,” IMF chief Kristalina Georgieva said in a press briefing on March 27.
She spoke to reporters following a virtual meeting with the Washington-based lender's steering committee, when she officially requested an increase in the fund's fast-deploying emergency facilities from their current level of around $50 billion.
The US House of Representatives on Friday approved a $2.2 trillion aid package - the largest in history - to help cope with the virus-inflicted economic downturn, while U.S. consumer sentiment dropped to near a 3-1/2-year low in March, said a Reuters report.
The dollar was holding close to its lowest since March 17, touched on Friday, making gold cheaper for investors holding other currencies.
On the Multi Commodity Exchange (MCX), April gold contracts were trading higher by 9, or 0.02 percent, at Rs 43,580 per 10 gram at 09:30 hours.
Experts are of the view that Gold witnessed its best week in the last 12 years and the rally is likely to continue. Investors could deploy buy on dips approach.
“On the daily chart Gold prices traded positive after a weak opening, still ended with their best week in almost 12 years after investors cashed in on part of the yellow metal’s supercharged gains on the back of the gigantic U.S. fiscal response to the coronavirus,” Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities told Moneycontrol.
“On the technical front, major moving average such as 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,” he said.
Trivedi further added that for the day 43,650-43,950 will act as resistance whereas 43,275-42,925 as supports.Disclaimer: 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.