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Last Updated : Mar 20, 2020 10:47 AM IST | Source: Moneycontrol.com

Gold rate today: Yellow metal slips more than 1%; may find support at 38,300

Experts are of the view that profit booking in Gold prices is likely to continue, and the yellow metal could find some support near 38,300 levels, suggest experts.

India Gold April futures plunged more than 1 percent on March 19 despite measures announced by the European Central Bank to mitigate the economic effects of the coronavirus epidemic.

The spot Gold prices also pared gains after starting on a positive note with a loss of over 1 percent. Gold has fallen quickly from the recent swing high of $1,703 on March 9 to $1,464 an ounce (intraday) on March 19 that translates in a fall of 14 percent.

Experts are of the view that profit booking in Gold prices is likely to continue, and the yellow metal could find some support near 38,300 levels, suggest experts.

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On the Multi Commodity Exchange (MCX), April gold contracts were trading lower by Rs 546, or 1.3 percent, at Rs 39,177 per 10 gram at 09:20 hours.

Gold and silver prices crashed again on Wednesday after the U.S. dollar catch the safe-haven bid and gained more than 2 percent. The Dollar index crossed 101.50 in an intraday session on Wednesday. Gold breached $1500 and silver also breached $12 per troy ounce levels.

“The whole world is in deep fear of Covid-19. The heavy selloff is seen once again in global financial markets. U.S. equity market hit the fourth lower circuit in the last two weeks. We expect both the precious metals remain volatile on Thursday,” Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.

“Gold is expected to be traded in the range of $1450-1532 and silver is expected to be traded in the range of $11.40-12.80 per troy ounce in the international market,” he said.

Jain further added that at MCX, Gold prices are expected to be traded in the range of 38,300-40,400 range and silver is expected to be traded in the range of 32,500-35,800.

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Trading strategy:

Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities

The major moving average such as 20, 50, 100-Days EMA is suggesting profit booking can continue as the markets try to cover margin globally on the back of heavy weakness in equities.

Overall, the trend remains positive till the time 39,500 holds on a closing basis but selling will be seen at higher levels. For the day 40,050-40,450 will act as resistance whereas 39,725-39,400 as supports.

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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First Published on Mar 19, 2020 10:20 am
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