Sell MCX Gold Apr Fut at Rs 29500: Emkay

Emkay Commodity Research has come out with its report on Gold and Silver. According to the research firm, one can sell MCX Gold April Future at Rs 29500 with stoploss of Rs 29650 for the target of Rs 29250.

U.S. gold futures for April delivery settled up 20 cents at $1,575.10, with trading volume about 10 percent below average.   Gold prices fell as the ECB and BOE kept interest rates unchanged and hurt gold’s inflation hedge appeal. However a stronger euro internationally pressured the dollar and limited the downside in gold.   SPDR Gold Trust, the world's largest gold-backed exchange-traded funds holdings fell 1.805 tonnes to 1,243.05 tonnes on March 7.  

Gold prices are expected to go down as expectations for positive non-farm payroll data from US would further hurt gold’s safe haven appeal.   Gold in India is also looking weak as a stronger rupee can further push prices down. Gold for April delivery on the Multi Commodity Exchange (MCX) was down by 0.69% at INR 29,389/10gms. 

Trading strategy:

MCX Gold (April Fut): sell at Rs 29500, Stoploss- Rs 29650, target- 29250.

MCX Silver (May Fut): sell at Rs 54900, Stoploss- Rs 55600, target- 54000.

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