The bullion metal lost Rs 2,562, or 4.68 percent, for the week on MCX as investors booked profit (Image courtesy: Reuters)
India Gold MCX April Futures rose above Rs 48,000 on February 9 tracking a positive trend seen in the international spot price. MCX Silver March futures also traded above Rs 70,000.
International spot Gold prices inched up on a weaker dollar and hopes of a massive U.S. stimulus package to support the virus-stricken economy boosted the precious metal's appeal, said a Reuters report.
Gold is considered a hedge against inflation and currency debasement, likely from the widespread stimulus, it said.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading higher by 0.4 percent at Rs 48,026 for 10 grams at 0920 hours. March silver futures were trading 0.20 percent higher at Rs 70,223 a kilogram.
Experts suggest buying the dip in the domestic precious metal prices. Any dip towards Rs 47,580 should be used to go long for the target of Rs 49,100 per 10 gm.
Gold and silver gained for the second straight day amid weakness in the dollar index and U.S. President Joe Biden’s push to pass a $1.9 trillion stimulus from the senate.
Gold April futures contracts settled on a positive note at $1834.20 per troy ounce and silver March futures contract settled on a positive note at $27.58 per troy ounce. Both the precious metals also settled on a positive note in the domestic markets.
Gold and silver catches bargain buying at lower levels after downbeat U.S. non-farm employment data released last week, suggest experts.
“We expect both the precious metals to remain volatile and gold could face stiff resistance around $1858 per troy ounce and silver could face resistance around $28.55 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, gold has a support at 47580-47300 and resistance at 49055-49330; silver is having support at 69500-68800 and resistance at 70700-71500 levels,” he said.
Jain suggest buying the dips in the gold around 47580 with a stop loss of 47300 for the target of 49100 and in Silver around 69500 with a stop loss of 68800 for the target of 71200.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver rose on Monday as expectations of a large U.S. economic stimulus package bolstered bullion's appeal.
Domestic gold and silver prices rose on Monday tracking overseas prices. The U.S. Dollar Index ended weak on Monday amid doubts about the recovery of the U.S. economy from the pandemic from other places and lent support.
Domestic bullion could trade flat to higher this Tuesday morning, tracking the overseas markets.
Technically, MCX Gold April resistance now is at 47950-48280 level. Support is at 47600-47350 levels.
MCX Silver March witnessed a bounce back from 21-DMA at 67300 level & ended above 70000 indicating a sideways to upside momentum upto 70800-71500 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades marginally higher near $1838/oz after a 1.2% gain yesterday. Gold trades higher supported by a correction in the US dollar index from recent highs and increased expectations of US stimulus.
However, weighing on price is ETF outflows and higher US bond yields and improved risk sentiment. Gold has recovered from recent lows however a sustained rise may come only if US dollar corrects sharply.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.