Indian Gold April futures reversed early morning gains on March 24 which turned red and fell more than 2 percent despite positive trend seen in the international spot market.
Gold prices jumped on Tuesday after the US Federal Reserve announced unprecedented measures to support an economy that is reeling from the coronavirus pandemic.
For the first time, the Fed will back purchases of corporate bonds, backstop direct loans to companies and will "soon" roll out a program to get credit to small and medium-sized businesses, said a Reuters report.
On the Multi Commodity Exchange (MCX), April gold contracts were trading lower by Rs 288, or 0.70 percent, at Rs 40,875 per 10 gram at 09:20 hours.
Experts feel that Yellow metal is likely to remain volatile in the near-term, and could find support near Rs 40,440 per 10 gm, but it still remains a buy on dips strategy.
Gold and silver prices gained on Monday after US Federal Reserve announced a fresh QE program to support the economy. Bullions also get support from downbeat Chinese C.B. leading index Data and lower than expected European consumer confidence data.
“For India Gold, fall in rupee support prices. Looking at the volatility in global financial markets and QE announcements by global Central Banks both the precious metals remain in focus,” Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.
“Gold has support at $1533 per troy ounce and resistance at $1584-1600. Silver is having support at $13 per troy ounce and resistance at $13.80 if prices sustain above $13.80 could extend the rally towards $14.40 per troy ounce,” he said.
Jain further added that at MCX, Gold prices breached 41000 levels. It has a crucial resistance at 41330 and if prices sustain above these levels then it could extend the rally towards 41700-42100. The support is placed around 40,440.
Trading strategy:
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
On the daily chart, Gold prices rose on Tuesday, following a near 4 percent jump in the previous session after the U.S. Federal Reserve announced unprecedented measures to support an economy that is reeling from the coronavirus pandemic.
Major moving average 20, 50, 100-Days EMA are suggesting profit booking can come from higher levels as the markets try to cover margin globally on the back of heavy weakness in the equities.
Overall, the trend remains positive till the time 39500 holds on a closing basis but volatile sessions will be seen.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
