Gold was trading higher on April 15 in Indian markets following a positive trend in international spot prices. On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.36 percent at Rs 46,775 for 10 grams at 0935 hours. May silver futures were trading 0.25 percent higher at Rs 67,810 a kilogram.
Gold and silver prices were mixed the previous day as weakness in the dollar index was countered by strength in the US equities. Both precious metals settled on a mixed note.
“COMEX gold trades little changed near $1735/oz after a 0.6 percent decline on Wednesday. Gold eased back after failing to sustain above $1750/oz. Weighing on gold price is increasing optimism about the US economy and continuing ETF outflows,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities told Moneycontrol.
“However, supporting price is the Fed’s emphasis on keeping interest rates low and worsening virus situation. Gold is struggling to sustain above $1,750/oz amid mixed factors, however, rising virus cases and loose monetary policy stance may continue to support prices,” he said.
June gold futures contract settled at $1,736.30 per troy ounce and May silver contact settled at $25.52 per troy ounce. Due to the strength in the rupee both metals settled on a weaker note in the domestic markets.
The dollar index slipped amid rising US debt and consumer inflation.
“We expect the weakness in the dollar index and rising Federal Reserve budget deficit to support gold and silver prices. At MCX, Gold has support at 46,400-46180 and resistance at 46880-47050; Silver has support at 67200-66600 and resistance at 68100-68800 levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“We suggest buying in the gold around 46,400 with a stop loss of 46,180 for the target of 46,880 and in the silver around 67,100 with a stop loss of 66,500 for the target of 68,500,” he said.
Technical indicators
Analyst: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices fell on April 14 as an uptick in US treasury yields weighed on the non-yielding bullion's appeal, offsetting gains from a softer dollar.
Domestic gold and silver ended weaker, tracking the overseas prices. The rise in the 10-year yield came despite the budget deficit hitting an all-time high.
Data showed that the US government’s budget deficit surged to an all-time high of $1.7 trillion for the first six months of this budget year, nearly double the previous record.
Domestic gold and silver prices could trade flat on April 14 morning tracking overseas prices.
Technically, MCX June gold did not manage to give a breakout above Rs 47,000, indicating sideways momentum up to Rs 46,450-46,300. Technically, MCX May silver has support near Rs 66,900-66,200 levels. Resistance is at Rs 67,800-69,300 levels.
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