Gold price today: Yellow metal gains as China virus spreads; buy on dips

By in Commodity News on February 6, 2020 7:08 pm

India Gold February futures rose on January 27 tracking gains in the international market as spot gold climbed to a more than two-week high on rising concerns over the spread of a virus outbreak in China.

The new coronavirus in China has killed 80 and infected more than 2,000, as residents of Hubei province, where the disease originated, were banned from entering Hong Kong amid global efforts to halt the rapid spread of the outbreak, said a Reuters report.

On the MCX, gold contracts for February were trading higher by Rs 233, or 0.58 percent, at Rs 40,585 per 10 gram at 0920 hours.

Gold and silver prices gained last week after the death toll rose in China from Coronavirus. The initial reports suggest that the Virus is also spreading to other countries from China.

Experts are of the view that the Yellow metal is likely to gain momentum amid fears of rising risks with respect to Coronavirus. India Gold could retest 40,600-40,800 levels.

“Safe-haven buying was seen in both the precious metals amid fears of Coronavirus. At MCX, Gold prices closed above 40,330, and if it sustains above this crucial resistance level, it could test 40,450-4,0600 levels,” Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities told Moneycontrol.

“The levels of 40050 is likely to act as a major support for gold in the domestic market. Silver also closed above 46,800 and if it sustains above this crucial resistance could test 47,100-47,400 levels. 46,500 act as a major support for silver in the domestic market,” he said.

Track live Gold price here

Trading Strategy:

Expert: Pritam Kumar Patnaik, Head Commodities, Reliance Commodities

MCX Gold February has taken a support of Rising Trend Line which is placed at 39,830 which will act as immediate support to the counter.

Moreover, it has sustained well above 39,950 levels which suggests strong strength in the counter for upside momentum up to 40,600 levels.

International Gold has given upside breakout and likely to move higher towards $ 1,600 levels. On the downside, $ 1,568 will be a crucial support to watch out for.

Intraday strategy: MCX Gold February Buy in the range of 40,500-4,0450 with 40,360 as stop loss and target of 40,800 levels

Expert: Jateen Trivedi, Sr Research Analyst – Commodity & Currency, LKP Securities Ltd

On the daily chart, Gold traded positive and closed strong on Friday. Gold prices climbed to a more than two-week high on Monday as rising concerns over the spread of a virus outbreak in China and its potential economic impact prompted investors to buy the safe-haven metal.

20,50,100-Days EMA is signalling positive range bound movement ahead. RSI & MACD are signalling strength. For the day 40600-40750 will act as resistance whereas 40500-40300 as supports.

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