The price of gold was marginally lower by Rs 24 to Rs 47,273 per 10 gram in the national capital on Friday, according to HDFC Securities. In the previous trade, the precious metal had closed at Rs 47,297 per 10 gram.
Silver also declined Rs 909 to Rs 68,062 per kg, from Rs 68,971 per kg in the previous trade.
In the international market, gold was quoting marginally higher at USD 1,784 per ounce and silver was flat at USD 26.05 per ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, "Gold prices traded firm with spot gold prices at COMEX (New York-based commodities exchange) were trading at USD 1,784 per ounce on Friday. Gold prices held firm trading range recovering from Thursday's lows."
According to a report by Choice Broking, MCX Silver Future has traded sideways to bullish during this month so far, due to easing bond yields and US dollar index with the United States having released its $3 trillion stimulus package that has led to resuming of the industrial and manufacturing activates. Moreover, silver prices had also gained some strength during the last week due to strong US economic data that further coooled off the US Dollar Index. By April 22, MCX Silver futures closed to Rs 6,9218 per kg, higher by 8.46 percent compared to Rs 63814 per kg reported on March 31.
For the coming month, the brokerage estimates estimating MCX silver prices to trade mixed as ETF investments has shown improvement in the global markets due to weak US Dollar Index. Correspondingly, silver prices will also find support from the lower levels as the industrial demand is expected to find further recoveries and global markets are expected to resume business activities, the report said.
In the case of India, the central government has announced its effort to revive the economy by boosting vaccination for all adults. Industrial activities in construction and infrastructure developments are likely to continue as various states are going for curfew and a strict travel policy. However, ongoing worries about the COVID-19 situation in some states such as Maharashtra, Punjab and Delhi could sentimentally cap extreme upside movement in MCX silver prices. Correspondingly, the Indian equity market which is trading choppy with vaccine hopes and COVID worries could sentimentally also cap industrial buying. Overall, investors should buy with caution in MCX Silver future for the month ahead.
Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd, said, MCX Gold witnessed some correction as price had rallied since last few sessions. However the support of 47,500 still holds as good news for the bulls. “Strong resistance remains at 48,400 which need to be taken out by the bulls if they want to take it higher till 49,000. Immediate support is at 47,700 and strong support remains at 47,500. RSI has ticked lower from the overbought zone and is currently near 63 zone still supporting the bull case. Buying might remerge near to the support of 47,700 and might intensify on a sustained break above 48,400. The upside objective on break of 48,400 would be 48,800-49,000,” Rao said.
Rao said MCX Silver also followed gold as it corrected after testing a high near 70,400. Immediate support is pegged near 68,700 and strong support is at 68,200. Resistance is near 69,500 and then 70,500. RSI is still above the 50 zone supporting the bullish momentum. “Although the price has corrected, the primary trend remains bullish which should take prices higher. Going by the above evidences, we expect buying to remerge on dips for an upside objective of 69,800 and then 70,200. A sustained close below 68,200 might negate the bullish momentum,” he added.
