Gold Price & Silver Price may trade higher on delayed Fed rate hike outlook

Mumbai-India (Apr 6)  Gold prices may go higher as bad jobs data on Friday raised speculation of a delay in rate hike by the Fed.

Base metals are mostly higher in thin trade as China and UK remain closed. A weaker dollar is also helping prices.

Crude oil prices may extend gains as a weaker dollar combined with higher OSP’s set by Saudi for Asia will help sentiment.

MCX Gold opened on a positive note as COMEX was up by more than 1% trading close to $1217 (cmp $1219). Immediate resistance is at Rs.27080 and sustained break above could target towards Rs.27250 level. Intraday supports are placed at Rs.26860- 26685. Dip buying is advisable, but our view could negate if price break below Rs.26685.

Spot Gold - As recommended, Spot Gold traded with positive bias and achieved our suggested target of $1220 (High $1223). Upside for the metal looks to continue as long as $1211 - 1206 is held on downside. Price break above immediate resistance of $1224 could target towards $1236.

NCDEX Gold Hedge - Bias for NCDEX Gold Hedge looks sideways to positive as long as price holds above Rs.23900 - 23760. The metal could test Rs.24550 - 24680 mar. Our view could negate if it breaks below support of Rs.23760.

MCX Silver also opened on a positive note and rallied towards resistance near Rs.38450 level as COMEX was up by around 2% trading close to $17.08 (cmp $17.14). Immedaite support is at Rs.37880 whereas major support is at Rs.37580. Dip buying is advisable as long as supports are held on downside. Resistances are at Rs.38450 - 38730 levels.

Spot Silver is trading near our recommended resistance of $17.20 and price sustained trade above could extend its upside towards $17.45. Immediate support is at $16.95 level.

MCX Copper looks positive as long as above Rs.379 and a re-test of Rs.387.50 level looks possible. Major resistance is at Rs.390 level.

Source: CommodityOnLine