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Last Updated : Feb 05, 2020 09:46 AM IST | Source: Moneycontrol.com

Gold price today: Yellow metal edge higher on Coronavirus worries; may retest 40,200

On the MCX, April gold contracts were trading higher by Rs 148, or 0.37 percent, at Rs 40,123 per 10 gram at 0920 hours.


Indian Gold April futures rose on February 5 tracking gains in the international market as Coronavirus outbreak from China spread further and the death toll neared 500.

However, the risk appetite remains strong for equities buoyed by Beijing’s efforts to mitigate its economic impact. Chinese policymakers are readying measures to support the economy and overhang of trade deal still remains.

The White House’s top economic adviser said on Tuesday that the coronavirus would delay a surge in US exports to China expected from the Phase 1 trade deal set to take effect later this month, said a Reuters report.

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On the MCX, April gold contracts were trading higher by Rs 148, or 0.37 percent, at Rs 40,123 per 10 gram at 0920 hours.

Gold and silver prices crashed on Tuesday after upbeat US factory orders and economic optimism index. Dow Jones index gained more than 1 percent dollar index also gained and trigger selling in both the precious metals.

“Recovery in global equities, strength in the dollar index, upbeat US economic data, and strength in rupee and weakness in crude oil prices are a major reason for panic sell in both the precious metals. At MCX Gold prices slipped below 40000 levels and silver also slipped below 45500 levels,” Manoj Jain, Director, India Nivesh Commodities told Moneycontrol.

“We expect both the precious metals remain volatile and after two day's consecutive selling in both the precious metals prices will show some retracement from current levels,” he said.

Jain is of the view that Gold prices could show some recovery towards 40,200-40,330 and 39,880 act as a major support for the prices. Silver could also show some recovery towards 45,700-45,850 and 45,300 act as a major support for the prices.

Track live Gold price here


Trading Strategy:

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

On the daily chart, Gold traded strongly negative on Tuesday, but could well trade in positive as Coronavirus outbreak from China spread further and the death toll neared 500.

After a long time prices have closed below 20EMA (40,200) showing signs of correction can escalate further towards 50EMA (39,466).

RSI & MACD are signaling basing range moves. For the day 40,100-40,250 will act as resistance whereas 39,950-39,800 as support.

Expert: Sriram Iyer, Senior Research Analyst, Reliance Commodities

MCX Gold April has given a breakdown of Rising Trend Line & started to trade below 40,500 levels which suggest downside momentum in the counter. Moreover, it is trading below 21-Daily Moving Average which is placed at 40,180 levels which suggest downside reversal in the counter.

International Gold: $1,545 will hold support & $1,563 will act a strong resistance. It may trade in $1,546-$1,562 range.

Intraday strategy: MCX Gold April Sell in the range of 40,150-40,170 with 40,300 as stop loss and target of 39,800 levels.

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.

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First Published on Feb 5, 2020 09:46 am
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