India Gold April Futures rose above Rs 48,000 per 10 gm on February 3, tracking a positive trend seen in the international spot prices. The March Silver Futures rose nearly 2 percent.
On the Multi-Commodity Exchange (MCX), April contracts were trading higher by 0.42 percent at Rs 48,024 for 10 grams at 0920 hours. Silver March futures were trading 1.8 percent higher at Rs 68,770 a kilogram.
Gold and silver plunged on February 2 amid strength in the dollar index and gains in the equity markets. Gold April futures contract settled at $1833.40 per troy ounce and silver March futures contract settled at $26.40 per troy ounce.
Both the precious metals were also settled on a weaker note in the domestic markets. Gold April futures contract settled at Rs 47,751 per 10 gram and Silver March futures contract settled at Rs 67,541 per one kilogram.
Strength in the dollar index and global activities also triggered profit-taking in both the precious metals, suggest experts. The dollar index climbed above 91 marks and global equities also gained on the hope of economic revival after the rollout of the COVID-19 vaccine.
“We expect both the precious metals to remain volatile in today’s session and gold is expected to hold key support of $1810 per troy ounce in the international markets while silver continues to trade with high volatility,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart, told Moneycontrol.
“At MCX, Gold has support at 47500-47200 and resistance is placed at 48000-48300. Silver has support at 66600-65500 and resistance at 68800-70000. We suggest to buy and accumulate gold on dips around the 47400-47200 range with a stop loss of 46900 for the target above 48000 and suggest to avoid trading in the silver futures contract,” he said.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices fell on February 2 with silver falling 8 percent. Domestic gold and silver fell on February 2, tracking overseas prices.
The attempted short squeeze by the smaller retail traders on silver has at least temporarily failed and one of the reasons contributing to the pullback could be the CME Group raising maintenance margins on silver futures by 17.9 percent on February 1 to tackle unusual market volatility.
Domestic bullion could trade flat to marginally higher this on February 3 morning, tracking a rebound of the overseas prices.
Technically, MCX Gold April ended on a negative note and below 47500 could see further downside fall upto 47,300-47,000 levels. Resistance is at 47950-48200 levels.
MCX Silver March ended with more than 8 percent loss near 67300 levels indicating a Bearish momentum to continue up to 65700-63900 levels. Resistance is at 68050-69200 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades 0.5 percent higher near $1842/oz after a 1.6 percent decline on February 2. Supporting gold price is hopes of additional US stimulus, disappointing Chinese economic data, and loose monetary policy stance of major central banks.
However, weighing on price is recent gains in the US dollar and progress on the vaccine front.
Gold may continue to witness mixed trade unless there is clarity on the US dollar trend however we expect price to trade with a positive bias on US stimulus expectations and loose monetary policy stance of central banks.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.