Gold was trading flat in Indian markets and silver was down nearly 1 percent on April 6 morning but experts say a rise in inflation and weakness in the dollar index can support prices of the precious metals.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.15 percent at Rs 45,350 for 10 grams at 0920 hours. May silver futures were trading 0.90 percent lower at Rs 64,505 a kilogram.
Gold and silver showed some profit-taking the previous day after upbeat US ISM non-manufacturing PMI data. Both metals settled a tad weaker in international markets.
Domestic markets, too, mirrored the trend. Experts advise investors to buy the dip in gold for a target of Rs 45,600 and silver for a target of Rs 65,500.
“Rise in inflation and weakness in the dollar index could support prices of both precious metals. We expect both the precious metals could show some strength in Tuesday’s session,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“Gold has support at $1,714-1,700 per troy ounce and resistance is placed at $1,744-1,758 per troy ounce. Silver has support at $24.40-24.00 per troy ounce and resistance at $25.10-25.55 per troy ounce. At MCX, gold has support at Rs 45,200-44,980 and resistance at Rs 45,550-45,770; silver has support at Rs 64,100-63,800 and resistance at Rs 65,100-65,600 levels,” he said.
Jain suggests buying in the gold around Rs 45,200 with a stop loss of Rs 44,980 for the target of Rs 45,600 and in the silver around Rs 64,200 with a stop loss of Rs 63,700 for the target of Rs 65,500.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold ended flat to marginally higher, while silver prices fell marginally on April 5 on hopes of a swift economic recovery following strong US jobs and services sector data bolstered gains on Wall Street.
Domestic gold and silver ended in the red on Monday, tracking overseas markets. However, a softer dollar and softening bond yields limited the decline.
Domestic gold and silver prices could start higher on April 6 morning, tracking overseas prices.
Technically, MCX June gold supports are at Rs 45,250 and Rs 45,000, while resistances are at Rs 45,500 and Rs 45,750. The range for April 6 session is Rs 45,250-45,750.
Technically, MCX May silver ended below Rs 65,000, which remains a major hurdle for the market. Support is at Rs 63,900 and a breach can pull prices down to Rs 63,000.Disclaimer
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