India Gold August futures are trading in a range on June 4 with a positive bias, but the bearish trend is likely to continue and traders should use sell on rise strategy on a bounce towards Rs 46,300 per 10 gm, suggest experts.
On MCX, June gold contracts were trading higher by 0.23 percent at Rs 46,114 per 10 gram at 09:20 hours. Silver July futures were trading 0.01 percent lower at Rs 48,450 per kg.
Gold and silver prices crashed on Wednesday on the hope of economic recovery, strength in global equities and upbeat US economic data.
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International Gold future tested crucial support of $1,692 per troy ounce and silver also retested crucial support of $17.70 per troy ounce. Gold slipped around 1.50 percent and silver was down more than 2 percent in the Comex division.
International bullion extended losses this Thursday morning in Asian trade amid optimism that reopening of several global economies could see an economic recovery quicker than previously anticipated. Slightly stronger US Dollar also weighed on prices.
“Hopes of additional stimulus from ECB today will keep downside limited. Domestic bullion could start lower this Thursday morning, tracking a negative start in the international markets,” Sriram Iyer, Senior Research Analyst at Reliance Securities told Moneycontrol.
“MCX Gold August contract gave a breakdown below 46,300 levels in second half session where it made a low of 45,670 levels but manage to close above 46,000 levels which suggest markets to continue on bearish note where a rise in price will be an opportunity to sell in coming sessions. Prices are intact in a range of 45,500-46,300 levels,” he said.
Iyer further added that MCX Silver July contact continues to trade under pressure where prices can fall up to 47,300-47,000 level in the coming session. However, 49000 will hold resistance.
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Expert: Manoj Jain, Director (Head – Commodity & Currency Research) at Prithvi Finmart Pvt Ltd
We expect volatility to continue in both the precious metals and lower levels buying is expected in both the precious metals around support levels of $1,692 and $17.70 per troy ounce. Avoid short selling at lower levels in today’s session.
At MCX, buying is expected in gold around 45,700 and in silver around 47,900 levels. Gold is expected to hold 45,500 and silver is expected to hold 47,400 levels.
Gold is expected to test its resistance level of 46,330-46,450 levels and silver could test the resistance level of 48,700-48,920.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades with little change near $1,705/oz after a 1.7 percent decline yesterday. Firmer equity markets have pressurised gold price. US-China tensions, weaker US dollar, ETF inflows, and protests in the US have kept price supported near $1700/oz.
Gold may remain under pressure until we see a halt in the rally in equity markets however price may continue to hold near $1,700/oz level amid global growth concerns and US-China tensions.
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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