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April 3, 2020 Gold News 0 Comments

Gold price (04-Apr-2020): Yellow metal rallies over 1%; could face resistance near 44,000

Experts are of the view that a major moving average suggests that there could be more upside, but the precious metal could face some resistance around Rs 44,000 per 10 gm

GOLD-JEWELSIndia Gold June futures rallied more than 1 percent on April 3 tracking positive trend seen in the international spot markets as the US reported a record number of unemployment claims on April 2.

The number of Americans filing claims for unemployment benefits last week shot to a record high of 6.65 million, as more jurisdictions enforced stay-at-home measures to curb the coronavirus, said a Reuters report.

On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 472, or 1.09 percent, at Rs 43,712 per 10 gram at 09:30 hours. Silver futures on MCX gained more than 3 percent to Rs 41,190 per kg.

Experts are of the view that a major moving average suggests that there could be more upside, but the precious metal could face some resistance around Rs 44,000 per 10 gm.

“On the daily chart, Gold prices were holding on to their gains in Asia on Friday as the U.S. reported a record number of unemployment claims yesterday. The United States announced overnight that a record 6.648 million people filed for unemployment last week, almost double analyst predictions of 3.5 million claims,” Jateen Trivedi, Senior Research Analyst (Commodity & Currency), LKP Securities told Moneycontrol.

“Major moving averages such as 20, 50, 100-Days EMA are suggesting positive trades. Overall, the trend remains positive till the time 39500 holds on a closing basis but volatile sessions will be seen with some profit booking on rallies,” he said.

Trivedi further added that for the day 44,000-44,250 will act as resistance whereas 43,700-43,500 as supports.

Strategy:

Expert: Sriram Iyer, Senior Research Analyst from Reliance securities

International Gold has bounced back after taking the support of 50-Daily Moving Average which is placed at $1580 levels which suggest upside momentum.

Moreover, on an hourly chart, there is a positive crossover of 21*50-Hourly Moving Averages which is considered as a Bullish Crossover.

However, $1596-$1585 holds strong support where upside $1625-$1637 will act as resistance which suggests gold may trade in a range of $1595-$1625 levels in the coming session.

MCX Gold June had a positive last session where prices crossed above 43000 levels which is a sign for positive momentum up to 43700-44100 levels.

Moreover, any breakdown below 43060 can take prices to 42700-42300 levels where upside resistance is at 43700-44000 levels. Intraday strategy: Gold June Buy in the range of 43200-43220 with 43000 as stop loss and target of 43700 levels.

Sourece: Moneycontrol

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