Gold prices back above Rs 44,000. Should you buy now or wait for further correction?

Gold prices have been volatile since early trade on Tuesday following a muted trend in the international spot prices. However, domestic silver price continued to correct.

On the Multi-Commodity Exchange (MCX), April gold contracts were trading higher by 1.2% at Rs 44,100 for 10 grams at hours. May silver futures were trading down 0.2% at Rs 64,039 a kilogram.

Gold prices have been lately facing resistance on their upward move due to a stronger US dollar and higher Treasury yields. Gold, which is considered a safe-haven asset, is sensitive to rising bond yields as they raise the opportunity cost of holding the non-interest paying yellow metal.

As for  a strategy for traders, experts suggest shorting expecting further downtrend.

Anuj Gupta, Vice President — Commodities & Currency Trade at IIFL Securities said, “For Today traders can sell gold at 44700 with the stop loss of 45100 for the target of 44200 levels. They can also go for sell in silver at Rs 64,300 levels with the stoploss of Rs 65,100 and for the target of Rs 63,000 levels.”

Vandana Bharti, AVP, Commodity Research believes one must wait for the volatile move sto pass before taking a trade.

“Currently gold is in consolidation mode. One should wait for technical confirmation. If it trades below Rs 43,775, then it may see further downside upto Rs 43,550. Dollar index is trading in a range with some upside bias. If it move up further then the selling will be more confirmed. Upside is capped near Rs 44,215”, she said.

As for the spot market, Gold prices vary according to the tax structure across states and cities. Here’s an update of the prices in key cities today.

Following the higher trend of prices today, Gold rates today have increased at all major cities including Delhi, Chennai, Kolkata and Mumbai.

Gold rate in Delhi for 22-carat has remained at Rs 44,070 with a hike of Rs 10 and that of 24-carat gold is at Rs. 48,070 with Rs. 10 hike.

In Chennai, the gold rate is at Rs 42,240 per 10 gram of 22 carat with Rs 90 decrease and 24-carat gold is at Rs 46,080 with Rs 100 decrease.

The gold rates in Kolkata is at Rs 44,200 per 10 gram of 22 carat with Rs 10 hike and the rate of 10 grams of 24 carat is at Rs 46,920 with Rs 10 surge.

In Mumbai, the gold rates have been at Rs 42,980 and Rs 43,980 per 10 grams of 22 carat and 24 carat with a fall of Rs 10.