India Gold June futures traded flat on April 9 but the trend remains to be on the upside. Traders are advised to remain on the positive side as long as gold holds on to the crucial support near 39,500 per 10 gm, suggest experts.
International Gold prices rose slightly ahead of a US weekly jobless claims report as the dollar inched lower, while increasing appetite for risk on hopes that the new coronavirus pandemic is nearing a peak limited the metal’s upside, said a Reuters report.
On the Multi Commodity Exchange (MCX), June gold contracts were trading flat at Rs 44,940 per 10 gram at 0920 hours. Silver futures fell 0.45 percent to Rs 42,947 per kg.
On the daily chart, Gold prices in Asia were flat in the morning despite the continuing economic uncertainty caused by the COVID-19 virus. For the third day in a row, prices for the yellow metal were in sync with stocks.
“The two prices usually move in the opposite direction. Major moving average 20, 50, 100-Days EMA are suggesting positive trades. Overall, the trend remains positive till the time 39500 holds on a closing basis but volatile sessions will be seen,” Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities told Moneycontrol.
“Base opening can be witnessed on Thursday. For the day 45000-45250 will act as resistance whereas 44800-44550 as supports,” he said.
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Trading Strategy:Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades little changed near $1680/oz amid lack of fresh cues. Supporting price is increasing cases of the virus worldwide, hopes of additional stimulus measures by central banks and governments and ETF inflows.
However, weighing on price is firmness in the US dollar and weaker consumer demand. Gold has corrected after failing to sustain above $1700/oz but has managed to hold above $1670/oz.
We may see choppy trade amid lack of clear cues however general bias may be on the upside on expectations of more stimulus measures.
Expert: Sriram Iyer, Senior Research Analyst from Reliance securities
International Gold Spot is sustaining above $1635 levels after giving a Breakout of Falling Trend line indicating a positive trend in the counter. Moreover, on an hourly chart, it has taken the support of 50-Hourly Moving Average which is placed at $1640 indicating a bounce back activity.
However, $1646-$1635 holds strong support where upside $1658-$1670 will act as resistance which also suggests gold may trade in a range of $1640-$1665 levels in the coming session.
MCX Gold June is trading flat after giving a breakout above 44500 levels indicating some consolidation phase to continue in the range 44600-45300.
Moreover, any breakdown below 44500 can take prices to 44200-44000 levels where upside resistance is at 45300-45700 levels.
Intraday strategy: Gold June Buy in the range of 44850-44870 with 44700 as stop loss and target of 45200 levels.Disclaimer
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