India Gold MCX April Futures are trading in the green on February 16 following positive trend seen in the international spot prices. Silver March Futures were trading higher by nearly 1 percent.
On the Multi-Commodity Exchange (MCX), April gold contracts were trading higher by 0.37 percent at Rs 47,418 for 10 grams at 0920 hours. March silver futures were trading 0.85 percent higher at Rs 70,728 a kilogram.
Experts are of the view that precious metals may remain choppy but the general bias would be on the upside amid weak dollar. Crucial support for the precious metal is placed at Rs 47000.
Gold and silver traded steady on Monday and settled on a slightly weaker note in the international markets. Gold April futures contract settled at $1823.20 per troy ounce and silver March futures contract settled at $27.33 per troy ounce
“As investors cool on gold, the silver market continues to feel the effects of the recently failed retail-induced short squeeze. The disaggregated report showed money-managed speculative gross long positions in Comex silver futures rose by 215 contracts to Rs 61,284,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
“At MCX, Gold has support at Rs 47000-46820 and resistance is placed at Rs 47550-47770. Silver has support at Rs 70500-69800 and resistance is placed at Rs 70900-71400 levels. We suggest buying in the silver on dips around Rs 69600 with the stop loss at Rs 69000 for the target of Rs 71400,” he said.
International gold dipped on Monday, however, silver surged higher on Monday supported by industrial demand for the metal.
Domestic gold and silver prices ended mixed with gold ending in the red, while silver, tracking overseas prices, surged on Monday.
Gold downside remained capped as the U.S. Dollar continued to remain on the weaker side on Monday.
Domestic gold and silver could trade flat, tracking the overseas markets.
Technically, MCX Gold April ended below Rs 47500 and will continue its Bearish momentum up to Rs 47100-46900 levels. Resistance is at Rs 47500-47650 levels.
MCX Silver March has bounced back from Rs 69000 levels which could take prices up to Rs 70800-71880 levels. Support is at Rs 69700-68000 levels.
Gold may remain choppy unless there are fresh triggers, however, general bias may be on the upside amid weakness in the US dollar.