Gold was trading in the red in Indian markets on March 12 following a muted seen in international spot prices. On the Multi-Commodity Exchange (MCX), April gold contracts were trading lower by 0.32 percent at Rs 44,737 for 10 grams at 0920 hours. May silver futures, too, were trading 0.47 percent lower at Rs 67,225 a kilogram.
Gold and silver bounced back in the international markets due to weakness in the dollar index and US President Joe Biden signing a $1.9-trillion stimulus bill but couldn't hold the gains as bond yields surged again and equity markets ended strong.
April gold futures contract settled at $1,722.60 per troy ounce and silver May futures contract settled at $26.19 a troy ounce. Both metals also settled slightly higher in the domestic market.
The dollar index slipped below the 92-mark again and supported both the precious metals but earlier gains were erased in the late evening session when ' 10-year bond yields climbed again in the US, data from Prithvi Finmart shows.
“Relief package lead inflation concerns are making bond attractive than non-yielding bullions. Faster economic recovery from the pandemic also pushed precious metal prices lower and gold lost around 9 percent from the start of the year 2021. We expect both the precious metals to remain volatile in the international markets but weakness in the dollar index could support prices at lower levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, gold has support at 44,660-44,440 and resistance is placed at 45,055-45,220 and silver has support at 67,000-66,600 and resistance at 68,100-68,800 levels. We suggest buying in silver on dips around 66,900 with a stop loss below 66,400 for the targets of 68,200,” he said.
Track Gold price here
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices fell on March 11 as US 10-year benchmark yields recovered from the lows of the session after better-than-expected jobless claims data.
Silver prices, too, gave up gains from the highs of the session to end marginally in the red. Domestic gold and silver ended marginally in the green.
Domestic gold and silver prices were trading flat on March 12 morning, tracking overseas prices. Technically, MCX April gold resistance is at 45,150-45,390. Support is at 44,700-44,520.
Technically, MCX resistance for May silver is at 68,270-69,350 levels. Support is at 66,800-66,000 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Comex gold was trading changed near $1,722 after a flat close in the previous session. Gold eased back from recent highs as upbeat US economic data and approval of the stimulus package brought a halt to the recent correction in the dollar and bond yields.
ETF outflows also show weaker investor interest. Gold may continue to sway along with the dollar but general bias may be on the upside on the new US stimulus package.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.