Gold price today: Yellow metal tests 42,000; buy on dips, say experts

Gold is expected to trade on a positive note, with marginal volatility in the counter, say experts.

India’s gold prices for April dropped on profit-booking on March 26, tracking losses in the international spot market as investors awaited the passage of a $2-trillion dollar US stimulus package to combat the economic impact of the coronavirus pandemic.

Latest reports say that the Senate has passed the aid bill

As the world stares at a recession, stimulus packages are the need of the hour. But, it is still a buy-on-dips market as the next visible target, according to experts, is in the range of 42,600.

On the Multi Commodity Exchange (MCX), April gold contracts were trading lower by 217, or 0.51 percent, at Rs 42,000 per 10 gram at 0930 hours.

nternational Gold has sustained above $1590, where $1,660 remained a tough resistance while $1,585 acted as support. The metal is expected to trade on a positive note with marginal volatility in the counter, experts say.

The MCX April gold contract has started to trade above 21 as well as 50-Daily Moving Averages, which is placed at Rs 42,016 and Rs 41,314, indicating a positive trend in the counter.

“If it sustains above 42,000 levels, then an upside momentum could take prices to 42,850-43m700 levels, where it holds the support of 41,700-41,300 levels,” Sriram Iyer, Senior Research Analyst from Reliance Securities told Moneycontrol.

“Intraday strategy: gold April buy in the range of 42,000-42,050, with 41,800 as stop loss and target of 42,600 levels,” he said.