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Monday, 1 April 2013

Buy MCX Gold June Fut at Rs 29950-29900: Emkay

U.S. gold futures for June delivery settled down by USD11.50 at USD1595.70. Gold prices were down as a stronger dollar internationally and rally in equity markets boosted the risk appetite of investors and pushed gold prices down. Banks reopened in Cyprus without causing a massive run on deposits despite a controversial bailout plan which also kept gold prices in check. North Korea has entered a state of war with South Korea which could lead to uncertainty and can support gold prices.  

Gold prices are expected to go up as safe haven buying can push gold prices higher. Gold in India is expected to follow international markets and rupee movement will not impact prices as currency markets are closed today. Gold for June delivery on the Multi Commodity Exchange (MCX) was down by 0.50percent at INR 30,044/10gms. 

Strategy:

MCX Gold (June): Buy- Rs 29950-29900, stoploss- Rs 29850, target- Rs 30150.

MCX Silver (May): Buy- Rs 52700-52200, stoploss- Rs 52000, target- Rs 53700

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