India Gold February futures steady on January 24 as investors opted for riskier assets after the World Health Organisation stopped short of declaring the China virus outbreak a global emergency, but the precious metal was on track to post a weekly gain.
The WHO said on Thursday that the new coronavirus that has emerged in China and spread to several other countries does not yet constitute an international emergency but it was tracking its evolution “every minute”, said a Reuters report.
On the MCX, gold contracts for February were trading lower by Rs 188, or 0.47 percent, at Rs 40,095 per 10 gram at 0910 hours.
Experts are of the view that weakness in the rupee could keep the domestic gold prices higher, and as long as it is trading above 40,000, a move towards 40,350 is possible.
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Spot Gold prices crossed $1560 per troy ounce and silver prices crossed $17.80 per troy ounce in the international market on Wednesday.
Due to weakness in rupee both the precious metals show strength in the domestic market and gold made a high of 40311 and silver also made a high of 46420, suggest experts.
“Due to the weekend session, we expect both the precious metals remain volatile today. Gold prices sustain above 40330 could extend rally towards 40500-40620. 40040 act as a major support for gold,” Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities told Moneycontrol.
“Silver prices sustain above 46300 could test 46500-46650 levels. 45800 continue to act as a major support for silver,” he said.
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Trading Strategy:
Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities
MCX Gold February has given a breakout above 39970 levels & has sustained above 40050 levels which suggest the upside momentum up to 40600 levels.
Moreover, on an hourly chart, it has given a breakout of Falling Trend line & trading above 21 as well as 50 Hourly Moving Average which indicates northward direction.
On the downside, the level of 39950 will hold immediate support for this upside rally. International Gold may trade in a $1550-$1567 range.
Intraday strategy: MCX Gold February Buy in the range of 40050-40070 with 39950 as stop loss and target of 40350 levels.
Expert: Jateen Trivedi, Sr Research Analyst – Commodity & Currency, LKP Securities Ltd
On the daily chart, Gold traded positive and ended strong, a virus outbreak in China supported the Gold prices as any such epidemic can weaken tourist visits also the World Health Organization said it is tracking the spread of the virus and global emergency over the outbreak but not panic right now.
In terms of moving averages, 20, 50, 100-Days EMA are signaling flat to positive range bound movement ahead. RSI & MACD are signaling strength. For the day 40250-40400 will act as resistance whereas 40100-40000 as supports.
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Source: Money Control
