Experts are of the view that Gold is likely to hold 50,300 levels, but if it sustains above 50,800 then a bounce back towards 51000 is possible.
India Gold October Futures bounced back on September 4 after closing in the red in the previous trading session tracking the positive trend seen in the international spot prices which rose slightly on a weaker US Dollar.
The pullback in global equities lifted demand for the safe-haven metal while investors await the release of US non-farm payroll data for August, said a Reuters report.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.38 percent at Rs 50,937 per 10 gram at 0920 hours. September silver futures were trading flat at Rs 66,990 per kg.
Experts are of the view that Gold is likely to hold 50,300 levels, but if it sustains above 50,800 then a bounce back towards Rs 51,000 is possible.
Gold and silver extended fall on Thursday amid better than expected US unemployment claims and rebound in the US dollar index.
International Gold slipped 0.35 percent and settled at $1,937.80 per troy ounce while silver plunged 1.91 percent and settled at $26.87 per troy ounce.
Gold and silver plunged in the international market after US unemployment claims fell to 8,81,000 and the US dollar index rebounded to 93 marks.
“Heavy sell-off in global equities, plunge in US 10 years bond yields and increasing US trade deficits support precious metals at lower levels. We expect after heavy sell-off in US equities, dollar index could correct again and support precious metals,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, gold is expected to hold crucial support levels of Rs 50,300 on a closing basis, if it sustain above Rs 50,800 could test Rs 51,100-51,300 levels again. Silver is expected to hold crucial support levels of Rs 66,500 on a closing basis, if it sustains above Rs 67,700 it could test Rs 68,500-69,100 levels again. Today, buy on dip strategy will work in both the precious metals,” he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver tumbled on Thursday as positive US economic data raised hopes for a quick recovery.
A fall in US jobless claims and positive manufacturing data reported earlier in the week weighed on prices.
Domestic bullion could trade flat-to-higher on Friday, tracking a positive start in the overseas prices. Technically, MCX Gold October traded on a negative note in a range of Rs 50,500-51,068 levels.
Moreover, prices ended below its 50-Daily Moving Average indicating for Bearish Trend. Support holds at Rs 50,260-49,800 levels and resistance is at Rs 51,200-51,500.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades moderately higher near $1,945/oz after a 0.4 percent decline yesterday. Weakness in the equity market and choppiness in the US dollar ahead of non-farm payrolls data has lent some support to gold.
However, weighing on price is weaker investor interest and consumer demand. Gold may remain choppy as we need to see if current gains in US dollar and yesterday's sell-off in equity markets continue or not and it could be determined by today's non-farm payrolls data.”
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