GOLD MCX UPDATE: KEEP EYE ON 45890 NEXT TARGET

GOLD MCX UPDATE: Gold and silver prices edged lower in Indian markets, a day after clocking sharp gains. On MCX, gold futures were down 0.33% to ₹45,767 per 10 gram while silver declined 0.28% to ₹65,715 per kg.

In the previous session, gold had jumped ₹600 or 1.25% per 10 gram while silver had surged 2% or ₹1,300 per kg. In global markets, gold today edged lower after hitting a two-weak high in the previous session.

GOLD MCX UPDATE: Gold Buy or Sell Today,

Gold Silver Reports: GOLD MCX KEEP EYE ON 45890 NEXT TARGET PRICE 46280——46520+++

Gold prices in India have rebounded from one-year low levels of ₹44,100 hit last week, helped by a rebound in global rates and coronavirus concerns.

Spot gold was down 0.2% to $1,739.46 per ounce. The precious metal had jumped to $1,745.15 in the previous session, lifted by a fall in US Treasury yields and a softer US dollar.

“Immediate resistance of $1760 should broken to continue upticks for the day. Else, there are chances of corrective selling but stiff support is placed at $1680, breaking the same is required to extend the momentum.

On MCX, gold faces resistance at ₹46,150 and support at ₹44,100, it said.

Among other precious metals, silver fell 0.3% to $25.10 while palladium was down 0.4% to $2,674.91.

However, ETF outflows continued to be a headwind for gold. The holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or ETF, fell 0.4% to 1,029.04 tonnes on Tuesday from 1,032.83 tonnes on Monday.

A decline in US bond yields and rising Covid-19 cases around the globe has supported gold, says Kshitij Purohit, Lead – International & Commodity at Neal Bhai Reports Investment Advisor.

“Technically, international gold is trading with marginal bullish momentum. Prices are sustaining above 50-SMA. Resistance is at $1750 levels,” he said.

Like gold, international silver is also trading with marginal bullish momentum and is sustaining above 50-SMA, he added.

Global stock markets today hovered near all-time highs while the US dollar and Treasury yields were steady. The investor sentiment was lifted after the IMF upgraded its global growth forecast for the second time in three months but the body warned about a divergence between advanced and lesser-developed economies. Also, the latest US labor-market data showed job openings rose to a two-year high in February.

Meanwhile, gold traders will be watching comments from US Federal Reserve Chairman Jerome Powell who takes part in a panel discussion about the global economy on Thursday. The Fed will also publish minutes from its March meeting today.

Titan Co. said growth momentum continued in the quarter ended March, aided by demand for gold as prices fell.

Revenue grew 36% in January and February over the corresponding pre-Covid period a year earlier, the jewellery-to-watch maker said in its quarterly update filed with exchanges. Overall, the top line surged 60% during the quarter on a low base. That follows a record revenue in the preceding three months.

A large business-to-business gold coin order that contributed about 8% of the growth aided revenue in the fourth quarter, the company said in its exchange filing. “While the jewellery division has emerged very strongly from the crisis and witnessed strong growth in the quarter, the watches and wearables and the eyewear divisions have also made very good progress on recovery.”

Margins, however, contracted because of a lower ratio of studded jewellery and higher share of coins over the previous year, the company said. A reduction in customs duty in February also contributed to lower margins.

As customs duty was paid upfront at higher rates at the time of procurement of gold, the company had to absorb the loss to the extent of duty already paid at higher rates.

Titan’s Exchange Filing

Here’s how Titan’s various businesses fared during the quarter:

Jewellery

The business contributing nearly 80% of Titan’s overall revenue continued to see strong sales momentum as a sharp decline in gold prices gave impetus to the consumer demand, Titan said. The large gold coin order further strengthened growth.

The wedding jewellery division, a strong growth driver through the year, saw meaningful increase in its overall share of revenue. Titan expects jewellery division’s retail sales in full 2020-21 fiscal to exceed the previous year’s number despite despite the lockdown disruption in the first quarter.

Other Highlights For Jewellery Division:

  • Strong growth seen in both metro and non-metro cities.
  • Strategy to increase market share of Tanishq through various local market-specific interventions resulted in a strong growth in Tamil Nadu.
  • Ticket size has normalised compared to the initial period of the year; it is still better than last year’s levels.
  • Invoices have moved from near full recovery in Q3 to strong double-digit growth in Q4.
  • Added 26 Tanishq stores on a net basis in FY21.

GOLD MCX UPDATE: Watches And Wearables

  • Business recovered to 90% of pre-Covid levels in the first two months of the quarter; reported revenue in the January-March period, however, was flat on a year-on-year basis.
  • E-commerce continues to have higher salience, with all other channels also making good progress.
  • The division also entered into a new category of audio accessories by launching over-the-head headphones and wireless earphones.
  • The business net added 13 World of Titan and 11 Helios stores, and closed 13 Fasttrack stores in FY21.

Eye Wear

  • The division’s top line grew 20% during the quarter, driven by the Titan Eye Plus channel.
  • The segment also launched its first Fasttrack branded eyewear store. The division net added 15 stores in FY21.

GOLD MCX UPDATE Other Key Highlights

  • Other businesses saw revenue recovery of around 80% in Q4.
  • Taneira saw 93% recovery in January and February with accessories business being a drag.
  • Fragrance sales have recovered to about 80%.
  • Sales in World of Titan stores are growing at 7%.
  • Accessories sales recovered to around 50% with business from e-commerce growing 2.3 times.
  • CaratLane delivered a growth of 60% for the quarter.
  • Titan Engineering and Automation saw revenue decline 26% during the quarter as the aerospace business continues to face challenges.

“We are encouraged by the strong recovery across all segments,” Dolat Capital said in a note following Titan’s update. “We continue to believe that the long-term fundamentals are intact and in the absence of higher investment opportunities in the sector, Titan would continue to command high valuations.”

Shares of Titan pared rose as much as 2.4% to Rs 1,561 apiece after the update before paring gains.

Of the 32 analysts that track Titan, 14 have a ‘buy’ recommendation, 11 suggest ‘hold’ while seven have a ‘sell’ rating. Based on the 12-month Bloomberg consensus data, the stock has a return potential of 2.8%.

GOLD MCX UPDATE: KEEP EYE ON 45890 NEXT TARGET via @goldsilverrepor
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