Gold was lacklustre in the early trade in Indian markets on March 25 due to profit-booking in the light of weak global cues. On the Multi-Commodity Exchange (MCX), April gold contracts were trading lower by 0.06 percent at Rs 44,835 for 10 grams at 0945 hours. May silver futures were trading 0.27 percent down at Rs 65,070 a kilogram.
In international markets, gold prices softened as the dollar rose against its global peers amid rising Covid-19 cases and reports of extended lockdowns.
Both the precious metals settled on a positive note in the domestic markets in the previous session. Gold April futures contract settled at Rs 44,860 per 10 gram with a gain of 0.48 percent and May silver futures contract settled at Rs 65,245 a kilogram, up 0.42 percent.
Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart expects both the metals to remain volatile due to strength in the dollar index and volatility in global equity markets.
"Gold is having support at $1,722-1,710 per troy ounce and resistance at $1,745-1,758 per troy ounce; silver is having support at $25-24.60 per troy ounce and resistance at $25.60-26 per troy ounce," Jain said.
On MCX, gold has support at Rs 44,660-44,500 and resistance at Rs 45,050-45,220. Silver support is at Rs 64,800-64,500 and resistance at Rs 65,700-66,200. "We suggest buying in the gold on dips around Rs 44,700 with a stop loss below Rs 44,500 for the target of Rs 45,050," Jain said.
Trading strategy
Sriram Iyer, Senior Research Analyst at Reliance Securities
LBMA gold spot is sustaining above 21-daily moving average at $1,731 level, above which it could see sideways to marginal upside momentum. Resistance is $1,742-$1,753 level.
LBMA spot silver is trading on a negative note below $25, indicating further downside move up to $24.75-$24.37 levels.
Domestic gold and silver prices could start flat to marginally lower on March 25, tracking overseas prices.
MCX April gold is holding resistance at Rs 45,000 and only a sustained push would keep prices above Rs 45,200-45,440 level. Strong support is at Rs 44,600-44,500.
If MCX May silver trades below Rs 65,500, we could see a sideways-to marginal downside momentum up to the support of Rs 64,400-63,800 levels.
MCXBULLDEX March could trade within the range of Rs 14,100-14,280 levels.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was trading unchanged near $1,736/oz after a 0.5 percent gain the previous day. Gold was rangebound as support from the Fed’s dovish stance, mixed economic data from major economies, renewed virus concerns and retreat in US bond yields was countered by firmness in the dollar and continuing ETF outflows.
Gold may remain choppy as a US dollar will be offset by the correction in yields, however, general bias may be on the upside on the Fed's dovish stance.
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