On the MCX, gold contracts for February were trading lower by Rs 239, or 0.6 percent, at Rs 40,233 per 10 gram at 0920 hours. It hit a record high of 41,096 per 10 gm on Monday.
India Gold February futures trade lower on January 7 - a day after it hit a fresh record high - amid lack of immediate escalation between the United States and Iran, denting bullion's safe-haven appeal.
On the MCX, gold contracts for February were trading lower by Rs 239, or 0.6 percent, at Rs 40,233 per 10 gram at 0920 hours. It hit a record high of 41,096 per 10 gm on Monday.
Gold and Silver prices witness very high volatility on Monday. Gold prices tested $1584 per troy ounce to hit a near 7-year high, and silver prices test $18.50 per troy ounce in the international market.
At MCX Gold prices crossed 41000 and silver prices crossed 48600 in intraday trade, but gave up some of the gains towards the close of the trade on Monday.
“Both the precious metals see profit-taking in the evening session after Russian defence minister said, we will hold talks with Iran and Turkey defence chief for joint actions to reduce tensions in the Middle East,” Manoj Kumar Jain, Director, IndiaNivesh Commodities, told Moneycontrol.
“After his statement both the precious metals slipped and gold closed around $1564 and silver closed around $18.10 per troy ounce. At MCX Gold prices closed around 40500,” he said.
Experts are of the view that Gold is likely to remain volatile amid geopolitical concerns, and dips should be used to go long for a target of 40,800.
Trading strategy
Expert: Manoj Kumar Jain, Director, IndiaNivesh Commodities
We expect both the precious metals remain volatile ahead of tensions in the Middle East and the statement from various countries on recent tensions.
Gold can be bought on decline around 40250 with a stop loss of 39980, and a target of Rs 40,800. Silver can also be bought on the decline around 47400 with a stop loss of Rs 47,100, and a target of 47,900.
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February has touched the All-time high of 41096 levels & has corrected almost up to 40500 levels which suggests some profit booking at higher levels.
On the daily chart, Gold fell below 40500 levels can go further down towards 40,100 levels where 39900 will act strong support.
Above 40800 levels, the upside momentum can be expected up to 41,200 levels. International Gold could trade in $1550-$1575 levels
Intraday strategy: MCX Gold February Sell in the range of 40500-40510 with 40700 as stop loss and target of 40100 levels.
Prices can be in the bullish momentum till the time they are above 39,500 on a closing basis. For the day, 40500-40700 will act as a resistance whereas 40350-40100 levels are likely to act as supports.Disclaimer: The views and investment tips expressed by investment 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.
