Gold price: Rs 44900 levels on could be tested after which bullish momentum may continue

Gold price: International Gold and Silver prices are trading with gains after a pause in the rally of U.S. dollar and Treasury yields was witnessed owing to stronger U.S. Treasury Yields and U.S. dollar. U.S president Joe Biden announced job plan of more than $2 trillion which could boost the yellow metal’s appeal as a hedge against inflation. Rumours of lockdowns across Europe has taken a toll on the pace of economic recovery which could fuel the upwards move, says CapitalVia Investment.

Technically, International Gold is trading with bullish momentum after bouncing from the lows of $1682-$1675 levels. On the upside, $1720-$1725 could prove to be resistance for the prices. On the domestic front, MCX Gold June opened on a flat note and has been sustaining above 20-SMA. Prices are trading with bullish momentum since the previous session and have already rallied more than 800 points from the support of 44000-44200 levels. CapitalVia Investment says that it expects a minor correction to take place in the upcoming session where 44900 levels could be tested after which bullish momentum may continue.

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Like Gold, International Silver is also trading with bullish momentum and traded above $24.00 levels in the morning session. Prices are resisting below $24.50-$24.60 levels. MCX Silver May opened on a negative note but then traded with positive bias. It has rallied approx. 1500 points from yesterday’s low of Rs 62500. Intraday resistance is at Rs 64000 - Rs 64300 levels which when breached with heavy volume could lead the prices to test Rs 65000 levels on the upside during the upcoming sessions.