Moneycontrol
Get App
Last Updated : Feb 13, 2020 09:55 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal rises amid rising Coronavirus fatalities; could retest 40,700

Gold price could retest 40,700 per 10 gm but could face selling pressure at higher levels, suggest experts. Investors could use rallies to go short with a target of 40,320, they say.


India Gold April futures rose on February 13 tracking gains in international Gold prices as investors sought the safety of bullion after a sharp jump in the death toll from Coronavirus.

The Chinese province of Hubei, the epicentre of the Coronavirus outbreak, reported a record rise in the death toll on Thursday, as global health experts warned the deadly disease could get far worse before it is brought under control, said a Reuters report.

On MCX, April gold contracts were trading higher by Rs 119, or 0.30 percent, at Rs 40,603 per 10 gram at 09:20 hours.

Close

Gold and silver settled on a mixed note on Wednesday, but some buying was observed at lower levels in both the precious metals. Gold held on to the crucial support of $1,562 but silver breached key support of $17.55 per troy ounce in the international market.

“Dollar index climb again after Fed chairman's positive remark on US economy. Both the precious metals are consolidating in a range from last few trading sessions,” Manoj Jain, Director, India Nivesh Commodities told Moneycontrol.

“Gold is expected to hold 40,330 levels while silver is also expected to hold 45,400 levels and could test 45,700-45,850,” he said.

Gold price could retest 40,700 per 10 gm but could face selling pressure at higher levels, suggest experts. Investors could use rallies to go short with a target of 40,320, they say.

Track live gold price here

Trading Strategy:

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

On the daily chart, gold prices rose on Thursday as investors sold equities and sought the safety of bullion after a sharp jump in the death toll from Coronavirus.

Overall the trend remains positive with some overhang at higher levels of 41,000-41,300. RSI and MACD are signalling trend to be volatile. For the day 40,550-40,700 will act as resistance whereas 40,400-40,225 will be supports.

Expert: Sriram Iyer, Senior Research Analyst, Reliance Commodities

MCX Gold April contract remained under pressure in the last session and closed on the negative note near 40,350 levels. This is suggesting negativity.

LBMA Spot Gold is moving in consolidation and the expected range will be $1,555 to $ 1,571 levels.

Intraday strategy: Sell MCX Gold April on the rise towards 40,440-40,460 with a target of Rs 40,320, and a stop loss can be placed below 40,570.

Expert: Hareesh V, Head of Commodity, Geojit Financial Services

A sharp rise in Cornoavirus-related fatalities and new virus cases from China continue to support gold’s safe-haven demand. Fears of the negative impact of the Coronavirus on the global economy will prompt investors to stay away from riskier assets that may boost gold further.

At the same time, a near four-month high for dollar and limited physical market activities will likely cap major gains in the commodity.

Technical outlook: As long as prices stay above the immediate support of $1,558, expect upticks to continue towards $1,592 initially, followed by $1,610 levels. However, it is required to break $1,545 to negate the broad bullish expectation and take prices lower.

Disclaimer: The views and investment tips expressed by investment 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.

Time to show-off your poker skills and win Rs.25 lakhs with no investment. Register Now!

First Published on Feb 13, 2020 09:55 am
Sections
Follow us on