India's gold prices for April retreated on March 12 but the precious metal is expected to hold on to the crucial support placed at Rs 43,000.
Equity markets tumbled in India and across the globe, the rupee fell more than 60 paise against the dollar and gold traded flat after the World Health Organization declared the coronavirus outbreak a pandemic.
The previous day, gold had slipped below $1,640 per troy ounce and silver also tested $16.70 per troy ounce. Prices in the domestic market tested crucial support of Rs 44,330 for gold and silver prices also tested lows of Rs 45,719.
On March 12 the Multi Commodity Exchange (MCX), April gold contracts were trading lower by Rs 47, or 0.11 percent, at Rs 43,308 per 10 gram at 1000 hours.
“The strength in the rupee prices of both the precious metals shows weakness in the domestic market on Wednesday. The WHO declared Covid-19 as pandemic and global equities slides again despite interest rates cut by Bank of England and stimulus hope from the US, we expect both the precious metals to remain volatile,” said Manoj Jain, Director, IndiaNivesh Commodities.
“Gold is expected to hold support levels of $1,622/INR 43,100. Silver is also expected to hold $16.55/INR 45,500 levels. Gold is expected to trade in the range of 43,000-43,650 and silver is expected to trade in the range of 45,400-46,200 levels.”
Trading strategy
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
Gold was trading flat in the morning, as concerns about the economic impact from the coronavirus increased after the outbreak was declared a pandemic and many countries took measures to combat the spread by restricting public gatherings.
Major moving averages such as 20, 50, 100-Days EMA are suggesting strong positive momentum for gold. Overall trend remains positive.
RSI & MACD are signalling trend to be heavy. For the day, Rs 43,475-43,625 will act as a resistance, whereas Rs 43,225-43,025 will act as a support.
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