Gold was trading lower in Indian markets on April 7 tracking muted trend in international spot prices amid optimism about the US economy, progress on the vaccine front and continuing ETF outflows.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading lower by 0.26 percent at Rs 45,798 for 10 grams at 0920 hours. May silver futures were trading 0.29 percent lower at Rs 65,705 a kilogram.
“Comex gold trades marginally lower near $1,739/oz after a 0.8 percent gain yesterday. Gold trades weaker amid optimism about the US economy, progress on vaccine front and continuing ETF outflows,” Ravindra Rao, VP- Head Commodity Research at Kotak Securities told Moneycontrol.
“However, supporting price is the recent weakness in the US dollar, rising virus cases and dovish stance of the Fed and other central banks. Gold has risen sharply in the last few sessions and may see extended gains only if there are fresh dovish cues from FOMC minutes due later today,” he said.
Gold and silver gained on April 6 amid weakness in the dollar index and rebound in the crude oil prices. Both the precious metals settled on a positive note in the international markets.
Both metals settled on a positive note in the domestic markets as well. From a trading perspective, experts recommend investors buy the dip in gold for a target of Rs 46,150, while silver is also a buy for a target of Rs 66,500.
“We expect both the precious metals to remain volatile in today’s session and continue to hold support at lower levels. At MCX, gold has support at Rs 45,750-45,550 and resistance at Rs 46,100-46,330. Silver has a support at Rs 65,500-64,900 and resistance at Rs 66,200-66,800 levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“We suggest buying in gold around Rs 45,700 with a stop loss of Rs 45,440 for the target of Rs 46,150 and in silver around Rs 65,200 with a stop loss of Rs 64,500 for the target of Rs 66,500,” he said.
Trading Strategy
Sriram Iyer, Senior Research Analyst at Reliance Securities
Domestic gold and silver rose on April 6, tracking overseas markets. A combination of factors contributed to gold and silver prices continuing to rise now for the fourth consecutive day.
The US dollar and the benchmark treasury yields eased and lent support. Another factor influencing precious metals price is officials at the International Monetary Fund backing the Federal Reserve’s decision to be patient about pulling back its easy monetary policy stance despite the improved outlook for the US economy.
We expect the domestic gold and silver prices to trade flat-to-lower on April 7 morning tracking overseas prices.
Technically, MCX Gold June supports are at Rs 45,550 and Rs 45,700 levels, while resistance is at Rs 46,100 and Rs 46,350. The range for April 7 session is Rs 45,550-46,350.
Technically, MCX Silver May supports are at Rs 65,300 and Rs 64,300, while resistances is at Rs 66,700 and Rs 67,900. The range for April 7 is Rs 65,300-66,700.
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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