India June gold futures slipped on April 28, tracking the muted trend in international spot prices as some countries plans to ease coronavirus curbs in a phased manner fuelled risk appetite.
International gold prices held above the key $1,700 per ounce level amid hopes of more stimulus measures to cushion the pandemic fallout.
Countries from Italy to New Zealand have announced easing of lockdowns but British Prime Minister Boris Johnson said it was too early to relax restrictions, a Reuters report said.
More states in the US with fewer cases eased restrictions aimed at controlling the spread of the virus that have led to a record 26.5 million Americans filing for unemployment benefits since mid-March, it said.
On the Multi Commodity Exchange (MCX), June gold contracts were trading lower by 0.76 percent at Rs 45,838 per 10 gram at 0930 hours. Silver futures were trading nearly1 percent lower at Rs 41,546 per kg.
Experts say gold may remain under pressure amid stability in equity markets, and investors could look at selling the yellow metal in the range of Rs 46,200-46,220 for a target of Rs 45,850 per 10 gm.
“International bullion prices have started lower this Tuesday morning in Asian trade extending losses from Monday as investors shifted to riskier assets like equities, which showed strength supported by plans by many countries to ease coronavirus-induced lockdowns,” Sriram Iyer, Senior Research Analyst from Reliance Securities told Moneycontrol.
“MCX Gold June has confirmed Bearish Reversal in the last session. Moreover, prices have broken below 46,200 levels, which signify downward pressure up to 45,800-45,500 levels. The strategy for Gold June for the intraday session will be a sell in the range 46,200-46,220 with a stop loss at 46,350 and target at 45,850.”
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Expert: Manoj Jain, an independent market expert
Both the precious metals traded sideways to negative on April 27. Gains in the dollar index and recovery in global equities triggered some profit-taking.
Gold futures contract at Comex division tested $1,720 per troy ounce, silver also tested $15.20 per troy ounce. At MCX, gold slipped below the crucial support of 46,330 but silver held 41,800 levels.
If gold prices continue to sustain below 46,330, it could test 46,050-45,920 level; 46,550 would act as major resistance.
Silver prices were expected to trade in the 41,650-42,300 range.
Expert: Ravindra Rao, VP- Head Commodity Research, Kotak Securities.
COMEX gold trades lower by 0.5% near $1715/oz after 0.7% decline on April 27. Gold came under pressure amid gains in the equity market on back of improving virus-related situation and countries working on lifting restrictions.
ETF investors also moved to sidelines. However, supporting the price is a correction in the US dollar index from recent highs and monetary easing measures by central banks.
Gold may remain under pressure amid stability in the equity market and the possibility of some disappointment from the Fed and ECB meeting later this week.Disclaimer
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