Gold Price Today: Yellow metal slips as banking crisis fears dissipate, dollar strengthens

Gold prices slipped on Wednesday after a positive beginning as the dollar index firmed up. Moreover, buying interest in gold dimmed as the banking crisis appears to be stabilising. Gold is expected to remain range bound in the near term, according to analysts.

MCX April gold futures were trading at Rs 59,487 per 10 grams around 12:30 pm, down Rs 247 or 0.41% while May silver futures were down Rs 307 or 0.43% per kg at Rs 70,277.

Gold is seen as a haven for investment in times of crisis and price movement in the yellow metal is inversely related to the movement in the dollar index.

Dollar index is hovering around 102.72 and was up 0.28%.

"Looking at the technical aspect, it appears that the price of Gold is exhibiting a measured move pattern that resembles a zig-zag pattern, consisting of three waves, starting from the $2,003 highs. In this type of pattern, waves 1 and 3 typically have the same length or a Fibonacci ratio. This indicates that XAU/USD may experience a decline towards the support level at the $1,934 March 22 lows, which could also function as the neckline for a bearish double top pattern,” Marc Despallieres, Chief Strategy and Trading Officer at Vantage said.

XAUUSD is a symbol that indicates how many US dollars a trader would require to buy an ounce of gold.

Despallieres sees resistance for Comex gold at $1956-$1999 while support at $1940-$1933,1887

MCX Gold futures have gained 7.15% on the year-to-date basis while they have risen 5.68% in March, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. As for Silver futures, the YTD upside has been 1.51$ while the month-to-date gains are around 8.68%, he added.

Intraday Trading Strategy by Anuj Gupta

• Buy MCX April Gold futures at Rs 58,700 with a stop loss of Rs 58,450 and price target of Rs 59,300
• Buy MCX May Silver futures at Rs 70,000 with a stop loss of Rs 69,550 and price target of Rs 71,100

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