India Gold February futures rose on January 30 after US Federal Reserve said the coronavirus outbreak could hurt China’s economy in the short term.
The US Fed held rates steady on Wednesday, with Chair Jerome Powell pointing to continued moderate economic growth and a “strong” job market, and giving no sign of any imminent changes in borrowing costs, said a Reuters report.
Both gold and silver were trading in a range throughout the day but made some recovery in the international market after US goods trade balance and existing home sales data disappointed the Street
On the MCX, gold contracts for February were trading higher by Rs 179, or 0.44 percent, at Rs 40,529 per 10 gram at 09:20 hours.
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Experts feel that Gold is likely to remain volatile and move in a range. Investors should use dips to buy the metal for a target of 40,600, while support is placed at 40,100 levels.
“At MCX gold prices breached crucial resistance of 40,330, we expect it could show strength but face resistance around 40,500-40,600 zone, 40,100 act as major support for the prices,” Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities told Moneycontrol.
“Silver also breached 45,500 levels could show some strength but will face resistance in the price range of 45,850-46,000. Rs 45,300 act as a major support for the prices. We expect prices remain volatile and will face resistance at higher levels, traders are suggested to keep booking profits at higher levels,” he said.
Hareesh V, Head Commodity Research at Geojit Financial Services
Prevailing upbeat sentiment in gold is likely to continue due to the safe-haven appeal. The concerns over the spread of deadly virus outside China and its possible economic impact will push investors to safer assets. At the same time, limited physical market activities and a stable US dollar may perhaps limit major gains.
Technical outlook: As long as prices stay above $1,560, expect it to continue the positive momentum with stiff resistance seen at $1,592 followed by $1,610 levels. An unexpected drop below $1,554 could weaken the sentiments.
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Source: Money Control