Gold prices traded lower in the domestic futures trade in the morning trade of February 25, tracking trends in global markets and tepid demand at spot markets.
In the US, gold prices eased, dented by higher US Treasury yields but weakness in the US dollar and US Fed's comments of keeping rates low for a long time supported the yellow metal.
Sharp gains in equities also weighed on gold's appeal. Extending the strong gains of the previous session, market benchmark Sensex jumped over a percent in early deals today.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading lower by 0.15 percent at Rs 46,451 for 10 grams at 0925 hours. March silver futures were trading 0.57 percent higher at Rs 69,940 a kilogram.
Gold and silver showed extreme volatility on Wednesday and the yellow metal plunged after upbeat US new home sales data and rebound in the dollar index.
Both the precious metals - gold and silver - settled on a mixed note in the domestic markets. Gold April futures contract were settled at Rs 46,522 per 10 gram with a loss of 0.60 percent and silver March futures contract were settled at Rs 69,543 per one kilogram with a gain of 0.29 percent.
"We expect both the precious metals to remain volatile in today’s session and silver could show some strength. Gold is having support at $1,784-1,770 per troy ounce and resistance at $1,810-1,822 per troy ounce; silver is having support at $27.55-27.20 per troy ounce and resistance at $28.20-28.60 per troy ounce," Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
"At MCX, gold is having support at Rs 46,330-46,155 and resistance at Rs 46,770-46,920; silver is having support at Rs 68,800-68,300 and resistance at Rs 70,200-70,700 levels. We suggest buying in the silver on dips around Rs 68,800 with the stop loss of Rs 68,300 on a closing basis for the targets of Rs 70,700 levels," Jain said.
Trading Strategy
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades little changed near $1,797/oz after a 0.4 percent decline yesterday.
Gold is choppy as support from Fed’s loose monetary policy stance and hopes of additional US stimulus measures are countered by higher bond yields, improving virus situation and continuing ETF outflows.
Gold may remain directionless amid mixed cues however Fed's loose monetary policy stance may continue to support it.
Sriram Iyer, Senior Research Analyst at Reliance Securities
SPDR Gold Trust ETF fund said its holdings fell 0.4 percent to 1,106.36 tonnes on February 24 from 1,110.44 tonnes on February 23. LBMA Gold Spot has bounced back from $1,783 level and is trading near $1,800 levels indicating sideways to bullish momentum up to $1,812-1,828 levels. Support is at $1,793-$1,784 levels.
LBMA Silver Spot is trading near $28, indicating a sideways momentum could continue where resistance is at $28.60-29.40 levels. Support is at $27.20-$26.40 levels.
MCX Gold April ended on a negative note and now could move towards the support near Rs 46,300-46,050 levels. Resistance is at Rs 46,700-46,850 levels.
MCX Silver March has bounced back from Rs 68,650 level and ended on a positive note indicating further upside momentum up to Rs 70,200-71,000 levels. Support is at Rs 69,100-68,400 levels.
MCXBULLDEX March below 14,950 levels can see negative momentum where further could trade in a range of 14,850-15,050 levels.
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