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Gold Price Today: Yellow Metal Holds 39,900 As Fears Of China Virus Epidemic Mount

Most experts feel that Gold is likely to trade in a range and investors should use dips if any to buy with a target of Rs 40,000.

Jan 23, 2020 / 09:39 AM IST

India Gold February futures were trading higher above 39,900 on January 23 tracking gains in the international prices as rising fears over the spread of China's new flu-like virus supported the safe-haven metal.

China's new flu-like virus claimed 17 lives and the cases of infection confirmed in more than 540 cases, leading the city at the centre of the outbreak to close transportation networks and urge citizens not to leave, said a Reuters report.

On the MCX, gold contracts for February were trading higher by Rs 6, or 0.02 percent, at Rs 39,919 per 10 gram at 0910 hours.

On Wednesday, safe-haven buying was seen at lower levels after Chinese coronavirus spreading. Spot Gold held on to the key support of $1550 per troy ounce and silver also hold key support of $17.70 per troy ounce on a closing basis in the international market.

At MCX, Gold prices held on to 39,800 level while silver prices closed above Rs 46,000 levels on Wednesday. Most experts feel that Gold is likely to trade in a range and investors should use dips if any to buy with a target of 40,000.

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Trading Strategy:

Expert: Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities

Profit-taking in the equity market, correction in the dollar index, fear of spreading coronavirus and lower export numbers from Japan in the month of December should help precious metals to hold key support levels.

If MCX Gold prices sustain above 39800 then it could test 39980-40100 levels. The level of 39,680 is likely to act as major support for Gold. If silver prices sustain above 46000 then it could test 46400-46600 levels again. Support for silver is placed at 45,800 levels.

Expert: Jateen Trivedi, Sr Research Analyst - Commodity & Currency, LKP Securities Ltd

Gold prices held steady on Thursday, as rising fears over the spread of China's new flu-like virus supported the safe-haven metal.

On the daily chart, Gold traded volatile and ended muted, a virus outbreak in China supported the Gold prices as any such epidemic can weaken tourist visits also the World Health Organization said it will decide on Thursday whether to declare a global emergency over the outbreak.

The RSI, as well as MACD, are signaling strength but some weakness can continue till the Gold keep trading below 40,000. For the day 40000-40200 will act as resistance whereas 39800-39650 as supports.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February remains unchanged & traded in a narrow range where 39750 acts as a support & 39974 acts as a resistance.

However, 39620 levels which are 21-Daily Moving Average is strong support from where a bounce back activity can be expected. International Gold may trade in $1568-$1550 range.

Intraday strategy: MCX Gold February Buy in the range of 39800-39820 with 39700 as stop loss and target of 40,000 levels.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Kshitij Anand is the Editor Markets at Moneycontrol.

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