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Last Updated : Jan 16, 2020 10:01 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal inches higher, may retest 39,800 levels

On the MCX, Gold contracts for February were trading higher by Rs 44, or 0.11 percent, at Rs 39,655 per 10 gram at 09:20 hours.

India Gold February futures inch high on January 16 as details of the US-China Phase 1 trade deal failed to soothe investor concerns about the trade differences, as Washington retained tariffs on some Chinese goods.

The United States and China signed the interim trade deal, but still kept 25% tariffs on a $250 billion array of Chinese industrial goods and components used by US manufacturers, said a Reuters report.

On the MCX, Gold contracts for February were trading higher by Rs 44, or 0.11 percent, at Rs 39,655 per 10 gram at 09:20 hours.

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Experts are of the view that as long as Gold prices hold on to 39,300-39,500 levels, chances of a retest of 39,800 is possible.

"On Daily chart, Gold traded flat to positive as investors remained concerned about existing tariffs and unresolved issues after Washington and Beijing signed a partial trade deal. Gold prices, overall, have priced in the trade deal phase I," Jateen Trivedi, Sr Research Analyst - Commodity & Currency, LKP Securities told Moneycontrol.

Gold and silver prices rebound from their lows on Wednesday after lower than expected US PPI and core PPI Data. Weakness in dollar index also supports the prices of both the precious metals.

“US house voted for sending US President Donald Trump's impeachment to Senate. Gold prices crossed $1,550 and silver prices crossed $18 per troy ounce in the international market,” Manoj Kumar Jain, Director, IndiaNivesh Commodities told Moneycontrol.

“At MCX, Gold closed around 39,600 and silver closed above 46,300 levels. We expect both the precious metals to remain volatile and could test next resistance level of $1,564 and $18.20 per troy ounce,” he said.

Jain further added that Gold holds support levels of 39,330 on a closing basis and could test 39,800 levels again. Silver also holds key support of 45,800 on a closing basis and could test 46,600-46,850 levels again.

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Trading Strategy:

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

Prices can be in some profit booking mode but the strong supports are placed near 39,000 and if the levels hold on closing basis then bounce expected. For the day 39,500-39,650 will act as resistance whereas 39,400-39,250 as supports.

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February has given a gap up open & has traded in a narrow range of 39,500-39,700 levels. It may continue to trade on bearish note if it sustains below 39,800 levels up to 39,200-39,000 levels.

MCX Gold may hold at 39,000 levels and can see a bounce back from these levels. The International Gold has bounced back from $1,535 levels which will hold support & upside $1,563 will act a strong resistance. It may trade in $1,445-$1,454 range.

Expert: Hareesh V, Head Commodity research at Geojit Financial Services

"Gold is likely to trade down as the initial trade deal between the US and China has lifted global economic optimism which has limited gold’s safe-haven demand. Easing tensions in the Middle East may also pressure prices. However, worries about existing tariffs and the unresolved issues in the trade deal are likely to limit major downside.

On the technical side, a range trade inside $1535-1562 levels is initially expected. Breaking any of the sides would suggest a fresh direction to the commodity."

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.

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First Published on Jan 16, 2020 09:51 am
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