Gold was trading with negative bias but was holding above the crucial support of Rs 46,000 in the Indian market on February 19, tracking a muted trend in international spot prices.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading lower by 0.26 percent at Rs 46,005 for 10 grams at 0920 hours. March silver futures were trading 1.2 percent lower at Rs 67,640 a kilogram.
Experts are of the view that gold is likely to remain volatile and investors can go short for a target towards Rs 45,770.
Both precious metals settled on a mixed note in the international market. April gold futures contact settled at $1,775 a troy ounce and March silver contract settled at $27.08 per troy ounce on February 18.
Due to strength in the rupee, both metals settled on a weaker note in the domestic market. April gold futures contract settled at 46,126 per 10 gram, while March silver settled at 68,494 a kilogram.
“Downbeat unemployment claims data and profit-taking in the dollar index supported gold prices. However, the surge in the bitcoin prices, rising US bond yields and strength in the global equities restricted further gains in gold,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
At MCX, gold has support at 45,920-45,770 and resistance at 46,330-46,550. Support for silver is at 68,000-67,400 and resistance at 69,100-69,500. "We suggest selling in gold around 46,220 with the stop loss of 46,550 on a closing basis for the downside targets of 45,920-45,770,” he said.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices crashed on February 19 as investor optimism over a global economic recovery raised US treasury yields and made the precious metal less attractive.
Tracking overseas prices, domestic gold and silver prices ended lower. Gold's reaction to an unexpected increase in weekly jobless claims was also relatively muted with US treasury yields rising amid signs of an economic upswing.
Domestic gold and silver could trade lower on February 19, tracking overseas markets.
Technically, MCX April gold is trading on a negative note where further downside momentum can be expected towards the support zones of 45,990-45,700. Resistance is at 46,300-46,690 levels.
If MCX March silver stays below 68,500, we could witness further downside to 67,700-66,900 levels. Resistance is at 68,900-69,300.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was trading 0.3 percent lower near $1,769 and tested the lowest level since June 2020. Weighing on the price is higher bond yields and continuing ETF outflows, which show weaker investor interest.
However, the loose monetary policy stance of major central banks, mixed economic data and hopes of additional US stimulus were supporting the price.
Gold's sharp sell-off makes it vulnerable to further decline, however, the losses seem overstretched, given the emphasis on continuing with stimulus measures.Disclaimer
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