Gold was trading a tad higher on April 23 in the Indian market, tracking positive trends in international spot prices. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.16 percent at Rs 47,848 for 10 grams at 0935 hours. May silver futures were trading 0.06 percent higher at Rs 69,260 a kilogram.
Experts suggest buying in gold on dips for a target of Rs 48,200 per 10 gm. Gold and silver prices dipped on April 21 after two days of gains as the US labour markets continue to see improvement after the pandemic and less American workers filed for first-time unemployment benefits, experts said.
Both the metals settled on a weaker note in the international markets. Gold June futures contract settled at $,1782.00 a troy ounce and May silver futures contract at $26.18 a troy ounce. The metals ended weak in the domestic market.
The dollar index traded steady during the day, trading above the 91-mark but a fall in initial jobless claims triggered profit-taking in both the metals.
“Improvement in the job markets and weakness in the global crude oil prices push both the precious metals lower. However, overall fundamentals are still supportive for precious metals as the dollar index is trading near seven weeks' low and coronavirus cases are rapidly increasing in India and Japan,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“We expect both the precious metals to remain volatile amid volatility in the dollar index and the rupee and continue to find support at lower levels. At MCX, gold has support at 47,500-47,330 and resistance at 48,000-48,280; silver is having support at 68,800-6,8500 and resistance at 69,900-70,400 levels,” he said.
Jain suggests buying in the gold around Rs 476,50 with a stop loss of Rs 47,300 for the target of Rs 48,200.
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Ravindra Rao, CMT, VP-Head, Commodity Research, Kotak Securities
Comex gold was trading marginally higher near $1,787 after a 0.6 percent decline the previous day. Supporting gold price is rising virus cases, choppiness in the equity market amid concerns about US corporate tax and ECB’s emphasis on continuing with loose monetary policy.
However, weighing on price is the lack of ETF buying and concerns about Indian demand and improving outlook for the US economy.
Gold is struggling to break past the $1,800amid a choppy US dollar, however, general bias remains positive amid rising virus concerns.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver fell from the highs of the April 21 session the dollar gained some ground.
Domestic gold and silver ended lower, tracking overseas prices.
Prices also found resistance at higher levels as data remained upbeat in the US. The US labour department reported that benefit claims fell to 574,000 last week from a revised number of 586,000 a week earlier. This is the second consecutive week resulting in a sizable drop in unemployment claims.
Domestic gold and silver prices could trade gains on April 23 morning, tracking overseas prices.
Technically, MCX June gold supports are at Rs 4,7500 and Rs 47,700. Resistances are at Rs 48,200 and Rs 48,500. MCX silver is above Rs 6,8500, indicating for upside movement up to Rs 700,00-71,700. Support is at Rs 68,400-67,600 levels.
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