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Gold price on Budget Day: Yellow metal rises; March Silver Futures jump 6% –

India Gold MCX April Futures rose on the Budget Day tracking positive trend seen in the international spot prices. Silver March Futures rallied by about 6 percent.

On the Multi-Commodity Exchange (MCX), February April contracts were trading higher by 0.53 percent at Rs 49,597 for 10 grams at 0920 hours. March silver was trading 6 percent higher at Rs 73,888 a kilogram.

Experts are of the view that precious metal prices are likely to remain volatile on Budget Day and any dip will be a buying opportunity.

Gold and silver prices settled on a positive note in the international markets on Friday. Gold April futures contract settled at $1,849.60 per troy ounce while Silver March futures contract settled at $27.06 per troy ounce.

Catch our live coverage of Union Budget 2021 here

Domestic markets also settled on a positive note. Gold and silver prices rebound again on Friday amid weakness in the dollar index and selloff in the global equities.

“We expect both the precious metals to remain volatile this week amid Indian Union Budget and volatility in the dollar index. We expect the government can raise import duty on both the precious metals to support investment in the sovereign gold bonds and exchange-traded gold funds,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“At MCX, Gold has a support at 49100-48880 and resistance at 49580-49770; silver is having support at 69200-68500 and resistance at 70700-71400,” he said.

Jain expects very high volatility in both the precious metals on Monday due to the Union Budget and any dips in the prices would be a buying opportunity in the gold around 49000 with the stop loss around 48500 for the target of 49770.

You can catch our live coverage of market action on Budget Day here

Trading Strategy:

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

COMEX gold trades modestly higher near $1855/oz after a 0.5% gain in the previous session. Gold trades higher supported by safe-haven buying amid choppiness in the equity market, rising virus cases, and mixed economic data.

However, weighing on price is continuing ETF outflows and doubts over US stimulus. Gold may continue to trade range-bound amid mixed cues however general bias may be on the upside owing to virus and growth concerns.

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices ended higher on Friday, with silver again outperforming gold.

Silver continued a blistering rally on Friday, taking its gains to around 10% since messages began to circulate on Reddit on Thursday morning urging retail investors to pile into the market and drive up prices.

Domestic bullion could trade higher this Monday morning, tracking the international prices, with silver expected to start with a gap up trade.

Technically, if the MCX Gold April contract trades above 49300, we could see a positive momentum up to 49500-49800 levels. Support is at 49000-48800 levels.

MCX Silver March could give a gap up open tracking global cues and above 71300 will continue its bullish momentum up to 72700-74400 levels. Support is at 70900-69500 levels.

Disclaimer: The views and investment tips expressed by experts on are their own and not those of the website or its management. advises users to check with certified experts before taking any investment decisions.