The Indian bullion market was disappointed with nothing for it in the interim budget against a long wishlist which included reducing import duties and Goods & Service tax (GST). Both gold and silver futures fell in the early trade in the domestic markets notwithstanding gains in the international markets.

While the MCX April gold futures were trading at 62,900 per 10 grams at 10:30 am, down Rs 65, the March Silver contracts were down Rs 53 or 0.07% at Rs 72,165 per kg.

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On the Comex, gold futures were trading at $2,071.80 per troy ounce, up $0.80 or 0.04%, while Silver futures were hovering at $23.255 per troy ounce, up $0.022 or 0.090%.

“This interim budget couldn’t gladden the bullion industry participants, as there were no major announcements related to this industry,” Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Limited (RSBL) said.

In the industry’s wishlist, the industry was hoping for a reduction from 15% import duties on precious metals, the reduction of 3% GST and an exempting capital gains tax on gold jewellery sales, Kothari said. GST refunds to NRIs and simplification of TCS and TDS rates were among other demands, he said while lamenting that all taxes and duties remain in status quo until the next budget.The dollar index (DXY) was trading slightly flat at 103.06 against a basket of six top currencies, though the bias was slightly positive. It has declined by 0.37% over the past five trading sessions. “Gold prices closed on a positive note on Thursday while silver prices ended flat with a slight negative bias. While geopolitical tension and higher crude oil prices have lent support to the yellow metal, FOMC’s stated position on interest rates has been a big dampener for gold and silver,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said

He sees the trading range at $2045-$2065 for Comex gold while Rs 62,500-63,500 for MCX contract. As for Silver, the March contract may trade between Rs 72,000-73,000, Gupta said as he recommended a buy in yellow metal at support levels.

Gold’s year-to-date (YTD) losses are at Rs 238 per 10 gram or 0.38% while month-to-date (MTD) gains stand at Rs 230 or 0.37, Gupta informed. As for Silver, the YTD declines stand at Rs 2,218 per kg or 2.98% while MTD declines at Rs 27 or 0.04, he added.

“Gold is on track for a weekly increase as lower US treasury yields make it more attractive. This comes amid renewed worries about the state of US banks leading to a higher demand for safe investments like gold and Treasuries. Traders are also betting on more Federal Reserve interest rate cuts this year, partly due to concerns about commercial property losses impacting banks,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said. .

On the daily chart, April MCX Gold futures have given a breakout of their descending channel forming a higher high and higher low pattern along with that MACD which has given a positive crossover indicating bullish sentiments, Qureshi said.

It is trading above 21 & 50-day EMAs while the RSI is forming a higher high and higher low pattern which adds to our bullish outlook, the Anand Rathi analyst said while putting resistance at Rs 63,000-63,400 and support at Rs 62,400-62,000.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,700 per 10 grams while those of 1 kg of Silver is Rs 73,500.

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Intraday Trading Strategy by Neha Qureshi

– Buy MCX April Gold futures at Rs 62,900 with a stop loss of Rs 62,300 and a price target of Rs 63,600.

– Buy MCX March Silver futures at Rs 72,200 with a stop loss of Rs 71,200 and a price target of Rs 74,200.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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