India Gold April futures witnessed profit booking at higher levels on February 25 after a massive rally seen in the previous trading session. Experts feel that investors could adopt a buy on dips approach for a target above 43,000 per 10 gm.
Spot Gold prices fell 1 percent on Tuesday as investors chose to pocket profits after the metal hit a seven-year high in the previous session, Reuters said in a report. But, growing fears over a spike in new coronavirus cases outside of China capped bullion's losses.
Gold and silver extend gain on Monday due to turmoil in global equities. International Gold reached a fresh seven-year high and test $1,689 per troy ounce. Silver also tests a high of $18.93 per troy ounce.
India Gold made a high of Rs 43,788 and Silver made a high of Rs 49,516 in the domestic market.
On the Multi Commodity Exchange, April gold contracts were trading lower by Rs 590, or 1.35 percent, at Rs 42,990 per 10 gram at 09:20 hours.
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Expert: Manoj Jain, Director, India Nivesh Commodities
We expect the overall trend of both the precious metals to remain firm but one correction due to profit-taking is expected in Tuesday's session. Gold is expected to test its support level of $1,644/Rs 42,800 and Silver is expected to test $18.40/Rs 48,800 levels.
It will be an opportunity for short sellers to cover their short position. Fresh buying is expected in Gold around 42,700, and one should keep a stop loss at 42,440 for the target of 43,100-43,400. Silver can be bought around 48,800 with a stop loss of 48,400 for the target of 49,200-49,500.
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
Some profit booking can be on cards as oversold levels are indicated on the charts, For the day 43,300-43,450 will act as resistance whereas 43,150-42,850 as supports.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.