India Gold June futures rose sharply tracking positive momentum seen in the international spot prices on the strong dollar while the plunge in the US crude oil prices increased bullion’s safe-haven appeal.
On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.54 percent at Rs 45,963 per 10 gram at 09:20 hours. Silver futures were up 0.32 percent to Rs 42,873 per kg.
An unprecedented move in WTI Crude oil on Monday in the US pushed both the precious metals up. WTI April contract slipped to negative for the first time in the history of the commodities futures market.
Experts are of the view that both precious metals are likely to consolidate, and investors could deploy buy on dips strategy for a target of 46100-46330 levels.
“Amidst the shortage of storage space, April contract settled negative and triggered safe-haven buying in both the precious metals. Gold futures contract crossed $1700 per troy ounce again,” kumar jain a gold expert says .
“Gold prices hold crucial support of 45300 at MCX and bounce again. We expect gold prices remain highly volatile today and 45300 is expected to hold in the domestic market, Prices sustain above 45800 could extend the rally towards 46100-46330 levels again.
International bullion prices have started marginally lower this Tuesday morning in Asian trade as the US dollar firmed this Tuesday morning.
Technically, LBMA Gold spot has bounced back from $1671 levels which remains immediate support to the counter. However, some consolidation could be expected in the coming sessions and prices may continue to trade in a range of $1670-$1705.
MCX Gold June on Monday held onto the immediate support near 45300 levels. However, upside 45900 levels remained intact and will act as resistance in the coming session. The intraday MCX Gold is expected to consolidate in a range of 45200-45900
