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MCX Gold & Silver Price Strategy: Yellow Metal Trades Above Rs. 48,000; Experts Say Buy The Dip! HURRY-Up Take Advantage Of Price Correction!

Since the budget was introduced on February 1 last week, the prices of gold and silver have continued to weaken. For all those who have been waiting for the government to reduce import tariffs on gold and silver, this is your buying opportunity.

This step by the government not only reduced the tariff from 12.7% to 7.5%, but the current impact is also reflected in prices.

Deputy vice president of commodity and currency research at Angel Broking, Anuj Gupta stated that since the announcement of the reduction of import tariffs, the price of gold has fallen between Rs 2000 and Rs 2500.

He said that as for silver, the price has fallen by nearly 2,000 rupees.

Senior Technical Analysts are bullish on Gold and Silver and recommends a buy on bullion. He stated that the outlook is positive in the near to medium-term prospects. 

Gold & Silver Spot Price 

On February 8, Gupta said that the spot price of gold was 48,500 rupees per 10 grams, while the price of silver was 70,000 rupees per kilogram.

MCX Gold, Silver Price Strategy

At 2 p.m. yesterday, the MCX April Gold Futures rose 19 rupees from the closing price of last Friday, trading at 47,275 rupees. He suggested a purchase at levels around 47,200. He puts the stop loss at Rs 46,800 and the target price at Rs 47,800.

At the same time, MCX March Silver Futures also gained nearly 150 rupees during this period, trading at 68886 rupees. He recommended purchasing at 68,500 rupees. He puts the stop loss at 67,800 rupees and the target price at 69,800 rupees.

Besides this, after the budget was presented on February 1 last week, the price of gold fell for a while, although the price improved slightly on February 5.

The price of gold fell by Rs 1,460 per 10 grams last week. On Thursday, February 4, April MCX Gold futures fell below 47,000 rupees per 10 grams.

But on February 5, the closing price of gold was 47,256 rupees on the strength of 550 rupees per 10 grams.

In addition to gold, silver has also faded during the budget week. On February 1, the MCX March Silver Futures price exceeded 74,400 rupees on the budget day but has continued to weaken since then, and the price fell to 66,800 rupees per kilogram on Thursday, February 4. In other words, the price of silver fell by Rs 6,800/kg in just four days.

What was the price of 10 grams of 24-carat gold in four cities yesterday?

10 Grams of Gold Price

  • Mumbai: Rs 47,150
  • Delhi: Rs 50,420
  • Chennai: Rs 48,630
  • Kolkata: Rs 49,500

Here’s the price of 1 kg of silver in these four metropolises

Price of 1 Kg Silver

  • Mumbai: Rs 68,700
  • Delhi: Rs 68,700
  • Chennai Rs 73,100
  • Kolkata: Rs 68,700

Indian Gold MCX April Futures rose to over 48,000 rupees on February 9, tracking the positive trend of international spot prices. MCX Silver March Futures also traded at more than 70,000 rupees.

According to Reuters reports, international spot gold prices rose slightly due to the weaker dollar and hoped that the United States would introduce a large-scale stimulus package to support the virus-affected economy, which boosted the attractiveness of precious metals.

It said: Gold is considered as a hedge against inflation and currency debasement or devaluation, possibly from a wide range of stimulus measures.

On the MCX (Multi-Commodity Exchange), April gold contracts were traded higher by 0.4% at Rs 48,026 for 10 grams at 0920 hours. March Silver Futures were traded 0.20% higher at 70,223 rupees per kilogram.

Experts recommend buying the dip in the domestic precious metal prices. Any drop to 47,580 rupees should be used to reach the target of 49,100 rupees per 10 grams.

The price of gold and silver gained for the second straight day, driven by a weaker U.S. dollar index and US President Joe Biden’s push through the senate stimulus package of $1.9 trillion.

The settlement price of the Gold April futures contract on a positive note at US$1,834.20 per troy ounce and the price of the Silver March futures contract settled on a positive note at US$27.58 per troy ounce.

Both precious metals closed up on a positive note in the domestic markets.

Experts suggest that after the pessimistic non-agricultural (farm) employment data in the United States was released last week, gold and silver catch bargains were bought at lower levels.

Manoj Jain, head of Commodity and Currency Research at Prithvi Finmart, said: We expect both precious metals to remain volatile. Gold may face strong resistance of almost US$1,858 per troy ounce, while silver may face stiff resistance around US$28.55 per troy ounce.

He further appended: At MCX, the support level of gold is 47580-47300, and the resistance level is 49055-49330; whereas the support level of silver is 69500-68800, and the resistance level is 70700-71500.

Manoj Jain recommends buying the gold near 47580 with a stop loss of 47300 for the target of 49100, while the silver near 69500 with the stop loss of 68800 for the target of 71200 to buy on dips.

Trading Strategy:

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver rose on Monday, as the United States is expected to introduce a large-scale economic stimulus package to enhance and bolstered the attractiveness of gold and silver.

Domestic gold and silver prices rose on Monday, following overseas prices. The U.S. dollar index closed lower on Monday due to doubts about the recovery of the US economy from pandemics from other places and the support provided.

Domestic bullion trade may be flat or higher this Tuesday morning, following the overseas market.

Technically speaking, MCX Gold April resistance is currently at 47950-48280. Support is at 47600-47350 levels.

MCX Silver witnessed rebounded from the 21-day moving average (DMA) to the 67,300 level in March and closed above 70,000, indicating that the upward momentum has risen to the 70800-71500 level.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities

After gaining 1.2% yesterday, COMEX gold rose slightly, close to 1838 US dollars per ounce. Gold trading is higher, supported by recent highs in the US dollar index correction and increased expectations of the US stimulus measures.

However, the weighing on prices lies in the outflow of ETFs, the increase in US bond yields, and the improvement in risk sentiment. 

Gold has recovered from its recent lows, but only a sharp correction in the U.S. dollar can it continue to rise.

 

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