Gold price today: Yellow metal remains flat with negative bias; buy on dips for a target of 40,900

India Gold February futures remained flat with a negative bias on 28 January as rising concerns over the fast-spreading coronavirus in China and its economic impact offset a firmer dollar.

International Gold inched to over 2-week high on mounting concerns over the economic fallout of the coronavirus outbreak sent investors scurrying for safe havens.

On the MCX, gold contracts for February were trading lower by Rs 45, or 0.11 percent, at Rs 40,540 per 10 gram at 0920 hours.

Experts are of the view that traders should use dips to buy into Gold for a target of 40,900 levels while support is seen at 40,300 levels.

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Trading Strategy:

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February had a volatile session and crossed above 40,800 levels & traded near 40,550 levels. Moreover, it has sustained well above 40,450 levels which suggests strong strength in the counter for upside momentum up to 41,000-41,200 levels.

International Gold has given breakout above $1.575 levels which will hold support & upside. $1587 will act a strong resistance. It may trade in a $1575-$1594 range.

Intraday strategy: MCX Gold February Buy in the range of 40,500-40,450 with 40360 as stop loss and target of 40900 levels.

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

Gold prices were little changed on Tuesday as rising concerns over the fast-spreading coronavirus in China and its economic impact offset a firmer dollar. Spot gold was unchanged at $1,581.09 per ounce.

On the Daily chart, Gold traded positive and closed strong. Prices were little changed on Tuesday as rising concerns over the fast-spreading coronavirus in China and its economic impact offset a firmer dollar.

20, 50, 100-EMA are signalling positive range bound movement ahead. RSI & MACD are signalling strength. For the day 40650-40800 will act as resistance whereas 40500-40300 as supports.

Expert: Hareesh V, Head Commodity Research at Geojit financial services
Gold’s safe-haven demand may edge higher on expectations that the virus outbreak in China may pressure the already weakened global economy. Weaker global equities due to the large scale risk aversion may also assist the yellow metal. At the same time, a stable dollar and limited physical market activities may limit major gains in the overseas market.

On the technical side, as long as prices stay above $1,568 expect rallies to continue with strong resistance is seen at $1,592 followed by $1,610 levels. A direct drop below $,1548 would negate any bullish expectation.

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