Gold price today: Yellow metal recovers 1% post steep fall on US Fed action
India Gold April futures rebounded on 16 March after a sharp fall seen in the previous trading session as US dollar and global equities fell sharply after the US Federal Reserve made another surprise interest rate cut.
On the Multi Commodity Exchange (MCX), April gold contracts were trading higher by Rs 656, or 1.6 percent, at Rs 41,004 per 10 gram at 0940 hours.
Despite the announcement of QE and interest rates cut by most of the global Central Banks global equities crashed last week, panic sell-off in equity puts pressure on bullions, suggest experts.
Gold cracked around 10 percent from the highs and silver prices cracked more than 15 percent from the highs during the week. Experts feel that the volatility will remain a dominant factor in this week and Gold could face resistance around 42,000.
"Prices of both the precious metals crashed in international as well as domestic market. It's more than the market pain seen during the 2008 Lehman brothers crisis.
Looking to the panic in global financial markets and extreme volatility due to fear of coronavirus we expect prices of both the precious metals remain volatile this week," Manoj Jain, Director, IndiaNivesh Commodities, told Moneycontrol.
"Gold prices are expected to be traded in the range of $1,477 to $1,560 per troy ounce and silver prices also expected to be traded in the range of $13.20 to $15.80 per troy ounce," he said.
Jain further added that at MCX, Gold prices are expected to be traded in the range of 38,500-42,400 and silver prices are expected to be traded in the range of 38,800-43,500 levels. Looking at the volatility we suggest to trade with strict stop loss and with less quantity.Track live gold price here Trading strategy
Expert: Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
On the daily chart, Gold traded very weak on Friday, breaking & closing below 20,50-Days EMA for the first time in 2020. The dollar and global equities fell sharply on Monday after the US Federal Reserve made another surprise interest rate cut of 1 percent bringing it down to near 0.
Major moving averages such as 20, 50, 100-Days EMA are suggesting profit booking can continue as the markets try to cover margin globally on the back of heavy weakness in equities.
Overall, the trend remains positive till the time 39,500 hold on a closing basis but selling will be seen at higher levels. For the day 41,000-41,450 will act as resistance whereas 40,850-40,650 as supports
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