India’s gold prices for June rose marginally on April 27 as equities firmed on expectations of a stimulus package from central bankers across the globe. Experts advise investors to use dips to buy the metal for a target of Rs 47,000 per 10 gm.
On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.10 percent at Rs 46,573 per 10 gram at 0930 hours. Silver futures were trading 0.69 percent higher at Rs 42,340 per kg.
Gold and silver showed extreme volatility in the week gone by. Gold prices gained around 2 percent in the domestic markets and were up over 2 percent in the international market.
Back home, on the auspicious day of Akshya Tritiya, which was on April 26, all physical markets remain closed in India due to the coronavirus outbreak and the lockdown hit demand.
“Gold prices got support by global economic turmoil, fresh $484 billion stimulus package announced by the US, weakness in the rupee and downbeat US jobless claims, manufacturing and services PMI and consumer sentiment data released last week,” Manoj Jain, an independent market expert told Moneycontrol.
“We expect gold prices to remain firm this week and if prices sustain above $1,740 per troy ounce, it could test $1,770 levels. The weekly close above $1,770 could extend the rally towards $1,822 per troy ounce in the coming days.”
The Bank of Japan is expected to expand monetary stimulus for the second straight month aimed at combating the deepening economic fallout from the coronavirus pandemic, said a Reuters report.
Gold tends to benefit from widespread stimulus measures as it is often seen as a hedge against inflation and currency debasement, it said.
Trading Strategy
Expert: Sriram Iyer, Senior Research Analyst, Reliance Securities
International bullion prices have started flat on April 27 morning in Asian trade as investors await cues from key central bank monetary policies this week.
Technically, the LBMA Gold spot is resisting $1,738-$1,740 levels, indicating some exhaustion.
However, the bulls are still in charge above $1718 levels. Therefore, some consolidation may keep prices in the range of $1,718-$1,737 in the coming session. Any break below $1,715 will act as a sign for Bearish Reversal up to $1,690 levels.
MCX Gold June found resistance at higher levels of the session, which suggests weariness in the counter. Intraday, prices are intact to trade in 46,200-46,900 range.
Expert: Ravindra Rao, VP- Head, Commodity Research, Kotak Securities
Comex gold trades marginally higher near $1,740/oz after a 0.6% decline on April 24. Supporting price is a marginal correction in US dollar, disappointing economic data from major economies, ETF inflows and hopes of additional monetary easing measures.
Weighing on price is improving situation in some hotspots and concerns about consumer demand. Gold has bounced back from recent lows but is still struggling to close above $1,750/oz.
Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency, LKP Securities Ltd
On the daily chart, gold prices traded flat on April 27 as equities firmed, while expectations for more economic stimulus measures limited losses. Spot gold eased 0.3% to $1,722.49 per ounce. U.S. gold futures rose 0.4% to $1,742.60.
Major moving average 20, 50, 100-days EMAs are suggesting basing move can be witnessed. Overall, the trend remains positive till the time 39,500 holds on a closing basis but volatile sessions will be seen with some profit booking on rises.
Flat to range opening can be witnessed today. For the day Rs 46,600-46,825 will act as resistance whereas Rs 46,400-46,225 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.
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