Gold and silver futures were trading positive on MCX in the early trade. The April gold futures were trading at Rs 55,912 per 10 grams around 9:45 am, up by Rs 191 or 0.34% from the Friday closing price, while May Silver futures were trading at Rs 64,805 per kg, higher by Rs 404 or 0.63 per cent around this time.
Commodity and currency expert Anuj Gupta remains positive on the prospects of bullion for this holiday-curtailed week and recommends a buying strategy on Gold and Silver futures.
Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities, spells out his intraday trading strategy where he suggests buying in April gold futures at Rs 55,800, with a stop loss of Rs 55,550 and a price target of 56,200.
He suggests buying in May Silver futures as well. Investors can look to buy it at Rs 64,600, with a stop loss of Rs 63,900 and a target of Rs 65,500.
Another analyst, Amit Sajeja echoed similar sentiments. He said that the main trigger for bullion will be US Federal Chair Jerome Powell’s testimony on the US central bank’s semiannual monetary policy report, submitted to the Senate Banking Committee. He said that Powell’s commentary on inflation and interest rate is expected to help the cause of gold.
Sajeja is vice president – Research–Commodities & Currencies at Motilal Oswal Group. His recommendation on April Gold futures is one to buy at current levels. He sees support at Rs 55,700 with a price target of Rs 56,250. He said that the target is likely to be achieved intraday or over a very short-term period.
On May Silver futures, the Motilal Oswal analyst suggests buying at Rs 64,600. He sees support at Rs 64,300 and puts the target price at Rs 65,600.Gold and silver gained due to short coverings and profit-taking in the dollar index, Manoj Kumar Jain Prithvifinmart Commodity Research said, adding that the trend is volatile.
Gold prices recovered from nine-week lows, and silver prices also recovered from four-month lows, Jain said. International gold prices crossed $1850 per troy ounce, and silver prices also crossed $21.20 per troy ounce levels, he added.
Gold and silver gained after profit-taking in the dollar index and mixed global economic data. The Eurozone inflation is still at 8.5%, and US inflation was also higher than expected and supported precious metals at lower levels. Global equity markets also recovered last week.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)