15443In view of reduced inflation and expenses, will it be right to invest in IT stocks?

Gold and silver prices edged lower in morning trade on March 12 in the Indian markets as a rally in risky assets took some sheen off precious metals and firmer US bond yields, a strong dollar weighed on the metal, but bullion is on course for its biggest weekly gain in seven.

On MCX, April gold contracts were trading lower by 0.3% at Rs 44,737 for 10 grams in early trade, while May silver futures, too, were trading 0.5% lower at Rs 67,225 a kilogram.

In the truncated session on March 11, gold prices had edged 0.11% higher while silver prices had advanced 0.2% reflecting a bounceback in the international markets due to weakness in the dollar index and US President Joe Biden signing a $1.9-trillion stimulus bill. However, gold couldn’t hold the gains as bond yields surged again and equity markets ended strong.

On the outlook on gold, experts see the losses to be limited as the passage of $1.9 trillion stimulus package has reignited inflation worries, driving the investors towards the yellow metal.

Moreover, the US Fed vowing to continue with low-interest rates until the targeted inflation is achieved may also levy some support for the yellow metal.

As a trading strategy, Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said, “For today, traders can go for ‘buy’ in gold at Rs 44,500 levels with the stop loss of Rs 44,200 levels and for the target of Rs 45,300 levels. They also go for ‘buy’ in silver at Rs 67,000 levels with the stop loss of Rs 66,200 levels for the target of Rs 68,500 levels.”

On the demand in the spot market, Gupta believes that the physical demand is expected to increase due to low prices. Also, the upcoming marriage season may provide a further push to the demand and jewellers, too, are expecting high physical demand going forward.