India Gold MCX June Futures trade higher on April 29 tracking positive trend seen in the international spot prices after the US Federal Reserve’s pledge to maintain an easy monetary policy to aid economic recovery.
A weaker dollar provided further support to the precious metal. The dollar index edged 0.1% lower against its rivals, boosting gold’s appeal for other currency holders, said a Reuters report.
On the Multi-Commodity Exchange (MCX), June gold contracts were trading higher by 0.43 percent at Rs 47,294 for 10 grams at 0935 hours. May silver futures were trading 1.13 percent higher at Rs 68,550 a kilogram.
Gold and silver plunged on Wednesday ahead of the U.S. Federal Reserve meeting outcomes and both the precious metals settled on a weaker note.
Gold June futures contract settled at $ 1773.90 per troy ounce, and Silver May futures contract settled at $ 26.09 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic market on Wednesday.
“After dovish Fed statements, we expect the dollar index could show weakness and support both the precious metals. We expect gold could retest $ 1800 per troy ounce levels again,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
“At MCX, Gold has support at 46920-46800 and resistance is placed at 47330-47480; Silver has support at 67500-67100 and resistance at 68200-68800 levels. We suggest buying in gold around 47000 with a stop loss of 46780 for the target of 47480 and in silver around 67500 with a stop loss of 67100 for the target of 68500,” he said.
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Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd
COMEX gold trades about 0.8% higher near $ 1788/oz after a 0.3% decline yesterday. Gold has edged up as the US dollar index slumped to a 1-month low on the back of the Fed’s decision to maintain its accommodative stance despite improving the outlook for the US economy.
Also, supporting gold is the hope of additional stimulus measures by the Biden administration. However, weighing on price is weaker investor buying and concerns about Indian demand.
Gold may remain choppy reflecting the trend in the US dollar as market players counter Fed’s dovish stance against improving economic outlook.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices rebounded from session lows and closed up on the session on Wednesday as the dollar dropped in the wake of the Fed decision.
U.S. Treasury yields also eased after rallying initially and lent support. Domestic gold and silver ended lower on Wednesday as the market awaited the Fed outcome.
Domestic gold and silver prices could trade with gains this Thursday morning tracking overseas prices. However, a stronger Rupee could cap gains.
Technically, MCX Gold June could start on a positive note above 47100 levels indicating a bullish momentum up to 47300-47500 levels. Support is at 47050-46900 levels.
Technically, MCX Silver could see a sideways momentum within the narrow range of 67400-68200 levels.
Hareesh V, Research Head Commodities at Geojit Financial Services.
Gold gained momentum after the US Fed’s pledge for an accommodative fiscal policy stance in yesterday’s policy meeting.
Concerns over the economic impact of the second wave of corona pandemic and a softer US dollar also benefited the yellow metal. Meanwhile, a steady equity market and signs of economic recovery in the US and China may dent major gains in the commodity.
Prices will continue with mild positive bias as long as $ 1760 hold the downside. Anyhow, major rallies are expected only if it breaks the next upside obstacle of $ 1820. A close below $ 1720 is a sign of immediate trend reversal.
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