Experts are of the view that the yellow metal is likely to head higher towards Rs 41,250. Supports are placed at Rs 40,800 level.
Indian Gold February futures reclaimed the Rs 41,000-mark on February 1 and could even retest the previous record high of 41,293 per 10 gram.
MCX is holding a special trading session on the Budget day.
International Gold prices have climbed as the fast-spreading coronavirus is causing concerns about the global economy, boosting appetite for safe havens. “The World Health Organization declared the epidemic a global emergency after the virus killed more than 200 people,” said a Reuters report.
On the MCX, February gold contracts were trading higher by Rs 60, or 0.15 percent, at Rs 41,060 per 10 gram at 0920 hours.
Experts are of the view that the yellow metal could head higher towards Rs 41,250. Supports are placed at Rs 40,800.
"The ill-effect of coronavirus are nowhere near to being resolved according to WHO, as the virus can be a global emergency if not controlled, hence demand can pick again from 40,250-40,000 which is a strong base support for gold prices," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, told Moneycontrol.
At MCX, gold rate for April continued to trade on bullish momentum and started to trade above Rs 41,000 level, which suggest a further upside moment.
Moreover, it is trading above 21-Hourly Moving Average is placed at Rs 40,858, which indicates a positive trend.
“International gold $1,570 will hold support & upside $1,588 will act a strong resistance. It may trade in $1,572-$1,588 range,” Pritam Patnaik of Reliance Securities told Moneycontrol.
“Intraday strategy: MCX Gold April buy in the range of Rs 40,900-40,920, with Rs 40,800 as stop loss and target of 41250 levels,” he said.
Expert: Manoj Jain, Director, India Nivesh Commodities
Gold and silver prices gained in yesterday's session after WHO declared coronavirus as a health emergency. Global equity markets are tumbled and safe-haven buying is seen in both the precious metals. Gold prices crossed resistance level of $1,584 and silver crossed $18 per troy ounce in the international market. Gold Prices Crossed 41,000 and Silver crossed resistance level of 46,850. Ahead of the presentation of Union Budget today at 11 am.
Volatility is expected in the domestic market due to any change in import duty structure. Looking at the severeness of coronavirus and stress in global equities, we suggest buying both the precious metals on dips in the domestic market.
Gold can be bought around 40,800 with a stop loss of 40,500 and the upside target of 41,200-41,300. Silver can also bought around 46,500 with a stop loss of 46,100 for the upside target of 47,100-47,500. Assuming that there is no change in the duty structure.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.
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