Gold price today: Yellow metal rise over 1%; could see a rally towards 41K

India Gold April futures rose more than 1 percent on Monday despite muted trend seen in the international spot prices. But, stimulus measures from global central banks to combat economic damage from the coronavirus could keep the money pouring in for the Yellow metal.

Gold price could remain volatile in the near term due to weak rupee, and stimulus measures introduced by global central banks. Gold could trade between the range of 40,920-41,500 levels, suggest experts.

On the Multi Commodity Exchange (MCX), April gold contracts were trading higher by Rs 499, or 1.24 percent, at Rs 40,857 per 10 gram at 09:20 hours.

International Gold and silver prices show extreme volatility last week as gold prices slipped to $1,450 per troy ounce and silver prices also slipped below $12 per troy ounce during the week.

Gold prices managed to close above $1,500 per troy ounce and silver also closed above $12.50 per troy ounce. Due to weakness in rupee both the precious metals get some support in the domestic market and gold prices closed with minor gains of 0.02 percent but silver crashed 11.47 percent at MCX.

“Precious metals also get support from the heavy selloff in global equities due to the rapid spread of coronavirus in 162 countries. EU and US is almost in lockdown situation and fear in global financial markets supporting prices of precious metals,” Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.

“We expect both the precious metals remain volatile this week due to volatility in global financial markets. At MCX gold prices are expected to hold 38400 levels and if Prices sustain above 40,440 could extend rally towards 40,920-41,500 levels,” he said.

Jain further added that Silver prices are also expected to hold 33,500 levels and if Prices sustain above 36,500 could extend rally towards 37,700-38,500 levels.

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Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities

On the daily chart, Gold prices trade flat to positive as investors liquidated their positions in equities but try to remain on cash despite stimulus measures from global central banks to combat economic damage from the coronavirus.

Major moving average 20, 50, 100-Days EMA are suggesting profit booking can continue 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.

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