India Gold MCX June futures are trading higher on April 1 following a positive trend seen in the international spot prices amid expectations of a US stimulus plan and reports of a new COVID-19 strain.
US President Joe Biden on Wednesday called for a sweeping use of government power to reshape the world's largest economy and counter China's rise in a $2 trillion-plus proposal that was met with swift Republican resistance, Reuters reported.
Stimulus measures increase the chances of higher inflation and gold is often considered as a hedge against it, the report added.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.03 percent at Rs 44,950 for 10 grams, at 09:20 hours. May silver futures were trading 0.34 percent lower at Rs 63,600 a kilogram.
Gold and silver prices gained on Wednesday amid short coverings and bargain buying at lower levels. Both the precious metals settled on a positive note in the international, and domestic markets.
The downbeat US pending home sales data released during the evening session also supported prices of both the precious metals. US President Biden’s infrastructure spending plans continue to support job markets and the economy and it could support silver prices at lower levels, suggest experts.
“We expect both the precious metals remain volatile in today’s session. Gold is having support at $1700-1688 per troy ounce and resistance at $1724-1738 per troy ounce. Silver is having support at $24.20-23.80 per troy ounce and resistance at $24.88-25.20 per troy ounce,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, Gold has support at Rs 44700-44550 and resistance at Rs 45100-45330. Silver has support at Rs 63300-62800 and resistance at Rs 64200-64800 levels. We suggest buying silver on dips around Rs 63300 with a stop loss of Rs 62700 on a closing basis for the target of Rs 64500,” he said.
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Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver recovered on Wednesday on short-covering and bargain hunting in the cash market.
Domestic gold and silver recovered on Wednesday, tracking firm overseas markets. Meanwhile, the US Dollar gave up the gain on Wednesday and lifted prices.
Domestic gold and silver prices could start higher Thursday morning tracking overseas prices.
Technically, MCX Gold June has bounced back from Rs 44200-44250 levels indicating an upside up to Rs 44900-45200 levels. MCX Silver May has bounced back from Rs 62500 and ended on a positive note indicating further upside to Rs 64200-64800 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades marginally lower near $1711/oz after a 1.8% gain in the previous session. Weighing on the gold price is US economic optimism, vaccine progress, higher yields, and lack of ETF buying.
Supporting gold is a retreat in the US dollar index from recent highs, mixed US economic data, rising virus cases and dovish central bank stance.
Gold has bounced back after managing to hold above $1670/oz, however, a sharp rise is unlikely until the 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.