Gold price today: Yellow metal sees profit taking; sell for a target of 45,300

Intraday Gold holds support near 45300-44900 levels & upside resistance at 45800-45950 levels in the coming session.

April 20, 2020 / 09:53 AM IST

India Gold June futures slipped on April 20 tracking muted trend seen in international spot prices.

International Gold prices fell to a more than one-week low on Monday as the dollar firmed and as investors remained optimistic that the US economy might reopen soon from lockdowns that were enforced to contain the novel coronavirus’ spread, said a Reuters report.

The dollar strengthened 0.1 percent against key rivals, making gold costlier for investors holding other currencies, said the report.

On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 0.44 percent at Rs 45,536 per 10 gram at 09:10 hours. Silver futures were up 0.35 percent to Rs 42,954 per kg.

It was roller-coaster week for both precious metals. Gold prices crossed $1,750 per troy ounce at COMEX division and hit a lifetime high of 47,327 at MCX during the week but fell after US President hinted for opening businesses in a phased manner.

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“Gold saw heavy profit-taking on Friday and slipped below $1,700 per troy ounce and closed with 3 percent loss, prices also slipped at MCX from their highs and closed below 45,700 levels. Rupee also gets some strength after RBI policy announcement and pushed gold prices lower at the domestic market,” Manoj Jain, an independent market expert told Moneycontrol.

“Gold is having strong support at $1,692/Rs 45,440, slip below these levels could show further lead to a fall towards $1,672-1,655/Rs 45,100-44,770 levels. If prices sustain above $1,700/45,800, they can move towards $1,730-1750/Rs 46,300-46,800 levels,” he said.

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Trading Strategy:

Expert: Sriram Iyer, Senior Research Analyst from Reliance Securities

International bullion prices have started marginally lower this Monday morning in Asian trade as the dollar firmed and as investors remained optimistic that the US economy might reopen soon from lockdowns.

Technically, LBMA spot Gold on the daily chart has confirmed a 'Bearish Pin Bar' Candlestick indicating a sign of Bearish Reversal.

Moreover, prices have given breakdown below $1,700 levels with good volume activity which signifies some correction may be expected to $1,672-$1,650 levels.

MCX Gold ended on a negative note and further correction is possible if international prices witness additional correction. Intraday Gold holds support near 45,300-44,900 levels & upside resistance at 45,800-45,950 levels in the coming session.

The strategy for Gold for an intraday session is Sell Gold June at 45,700-45,720 with a stop loss at 45,850 & target at 45,300.

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

On the daily charts, Gold prices traded weak on Friday.

Major moving average 20, 50, 100-Days EMA are suggesting basing move can be witnessed after corrections.

Overall, the trend remains positive till the time 39,500 holds on a closing basis but volatile sessions will be seen with some profit booking on rises. For the day 44,850-45,150 will act as resistance whereas 44,600-44,325 as supports.

Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

COMEX gold is trading marginally lower near $1,695/oz weighed down by some stability in equity markets as the virus-related situation improves in some hotspots and some countries work towards reopening their economies.

ETF investors have also moved to sidelines awaiting fresh cues. However, disappointing economic data and corporate earnings results which reflect upon possible impact from a virus outbreak is supporting prices.

Gold has corrected after failing to sustain above $1,750/oz level, however, a sharp decline is unlikely as global growth worries are far from over.

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.
Kshitij Anand is the Editor Markets at Moneycontrol.

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