The price of gold is floating over the intermediate regression channel’s midline, which has helped them rebound in the gold price.
However, natural resistance for April futures exists around Rs 45200, followed by Rs 45740 (21 Day EMA), and critical support holds about Rs 44200.
The strength index RSI (35) has changed from the oversold zone. Moreover, the positive divergence within RSI and price also strengthened the recovery in the gold price.
For the day, the price is required to go in the band of Rs 44200-45200 with sideways to positive bias. Only a close over Rs 45200 would continue its gains further towards Rs 45750.
The strategy is to purchase MCX Gold April at Rs 44600 with a target price of Rs 45200 and a stop loss at Rs 44200.
MCX Silver May future beheld quick recovery from the significant support zone of Rs 65800-65700 (78.6% Fibonacci retracement level). In the meantime, key resistance for May future exists about Rs 68200 (Top of the Doji Candle). This also corresponds with the 21 days EMA Rs 68050.
On the downside, Rs 65800 and Rs 64800 hold notable supports. On the momentum form, RSI is trading about 50(46), suggesting a sideways trend. For the day, the price is supposed to move in the range of Rs 65800-68200 with sideways bias. In fact, only a continued move out of the spectrum could bring more evidence on the direction of Silver prices.
The strategy is to purchase MCX Silver May at Rs 65800 with a target price of Rs 68200 and a stop loss at Rs 64800.
The price of Gold on the markets
Gold prices on Monday increased by Rs 44 to Rs 44,794 per 10 gram in futures trade as theorists created new positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for April delivery traded more distinguished by Rs 44, or 0.1 percent, at Rs 44,794 per 10 gram in a business turnover of 10,231 lots.
Fresh points built up by members led to the increase in gold prices, analysts stated.
Gold prices traded 0.23 percent above at USD 1,723.80 per ounce in New Gold prices. On Monday increased by Rs 44 to Rs 44,794 per 10 gram in futures trade as stockholders built new positions on a firm spot demand.