Gold traders in India, the world's biggest consumer, drifted back to the market on Friday as prices eased from their highest level in more than two months. Buying activity was so strong that even a fall in the precious metals in overseas markets, which normally sets the price trend on the domestic front, failed to influence the market sentiment. The most-traded gold for April delivery on the Multi Commodity Exchange (MCX) was trading 0.37 percent lower at Rs 28,252 per 10 grams, falling from the previous day's two-month high of Rs 28,511. Demand is better than last two days as prices have cooled off a bit. The dealer expects the momentum to continue in coming sessions, but added "a lot will depend on prices." A weaker rupee could limit the downside in prices. The rupee plays an important role in determining the landed cost of the dollar-quoted yellow metal. Silver also fell tracking the yellow metal. Silver for March delivery on the MCX was trading 0.41 percent lower at 56,941 rupees per kg.
Sell MCX Gold April contract at Rs 28,350-28,400 with stop loss Rs 28,500 and target Rs 28,200 and Rs 28,050.
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