Gold prices were up with mild gains in the morning trade in the domestic market amid weak global cues. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.09 percent at Rs 46,637 for 10 grams at 0935 hours. May silver futures were trading 0.08 percent lower at Rs 66,927 a kilogram.
A strong selloff in domestic equities amid rising COVID-19 cases and fresh restrictions imposed by state governments underpinned gold as a safe-haven asset.
Gold and silver suffered losses on April 9 in global markets amid better-than-expected economic data released by the United States and rebound in the dollar index from its lows.
However, both the precious metals settled with a weekly gain.
The better-than-expected US economic data supported the dollar index and bond yields again and pushed both the precious metals lower.
Gold is trading above 9 and 21-day EMA and showing a firm trend on technical charts, Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
He expects gold and silver prices to show some strength this week and any dips would be a buying opportunity in both the metals.
"Gold has support at $1,728-1,714, while resistance at $1,758-1,770 per troy ounce. Silver has support at $25-24.70, while resistance is at $25.70-26 per troy ounce," he said.
On MCX, gold has support at Rs 46,400-46,180 and resistance at Rs 46,880-47,050. For silver, support is at Rs 66,600-66,100 and resistance at Rs 67,500-68,200 levels, Jain said.
He suggests buying in gold on dips around Rs 46,400 with a stop loss at Rs 46,150 for the targets of Rs 46,900 and in silver around Rs 66,400 with a stop loss of Rs 65,800 for the target of Rs 67,800.
Trading Strategy
Analyst: Sriram Iyer, Senior Research Analyst at Reliance Securities
Technically, LBMA gold spot supports are at $1,733 and $1,720. Resistances are at $1,746 and $1,753. LBMA silver spot supports are at $24.90 and $24.20. Resistances are at $25.75 and $26.20.
MCX June gold resistances are at Rs 46,900 and 47,100 while supports are at Rs 46,550 and Rs 46,300.
MCX May silver resistances are at Rs 67,800 and Rs 69,000 and supports are at Rs 66,200 and Rs 65,300.
MCXBULLDEX April could trade in the range of Rs 14,450 to Rs 14,700.
Analyst: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold was trading marginally lower near $1,740/oz after a 0.8 percent decline in the previous session. Gold retreated after failing to sustain above $1,750.
Weighing on the price is a pause in the US dollar’s recent slide as a bigger than expected rise in US producer price rekindled inflation and interest rate hike expectations.
ETF outflows also show continuing exodus by investors. However, supporting the price is the rising virus cases and the Fed’s insistence on continuing with accommodative monetary policy.
Gold has come off recent highs and may see some extended losses provided the US dollar index recovers.
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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