Gold and silver futures continued their bull run on MCX on Friday, with April Gold futures trading at Rs 58,241 per 10 grams in morning trade, up Rs 235 or 0.41%.
Meanwhile, May Silver futures were trading at Rs 67,363 per kg, up Rs 832 or 1.25% around this time.
MCX Gold has given returns of 5.26% on the year-to-date (YTD) basis while returning 3.95% during March, according to Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities. Silver futures, on the other hand, are catching up fast, recovering their early losses, though still in the red, Gupta said. The YTD returns stand at a negative 2.88% while the month-to-date returns are at 3.32%, IIFL Securities analyst said.
Outlook
“Expect gold to trade lower towards Rs 57,330 levels. A break of which could prompt the price to move lower to Rs 56,840 levels,” Prathamesh Mallya, AVP- Research, Non-Agri Commodities, and Currencies at Angel One said.
With investors rushing to gold as a safe haven due to the global banking crisis, it is anticipated that it would rise for a third week in a row, the Angel One analyst said.
Investors must keep a track of the movement of the dollar which is inversely related to the price movement in bullion.
While a higher dollar index will soften bullion prices, the positive impact may get nullified for countries such as India which are net importers of precious metals, Gupta said.
“The dollar index fell to 104.27 on Thursday while Asian currencies opened on a slightly positive note today. The US 10-year bond yield was at 3.57% while Brent oil rose a tad bit to $74.97 per barrel,” Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP said.
Rupee is expected to remain in the range of 82-83 for some more time at least till 31 March, Bhansali said.
Intraday Trading Strategy by Anuj Gupta
- BUY MCX April Gold futures at Rs 57,800 with a stop loss of Rs 57,450 and a price target of Rs 58,500
- BUY MCX May Silver futures at Rs 66000 with a stop loss of Rs 65,450 and a price target of Rs 67,500
- BUY MCX March Copper futures at Rs 747 with a stop loss of Rs 742 and a price target of Rs 757
- Buy MCX CRUDEOIL mar futures at Rs 5,600 with a stop loss of Rs 5,450 and a price target of Rs 5,850
Investors remain cautious ahead of next week’s Federal Open Market Committee (FOMC) meeting, Marc Despallieres, Chief Strategy and Trading Officer at Vantage said. The XAUUSD witnessed heavy selling pressures during the American trading session, erasing most gains of the day and closing at the $1919 mark on Thursday.
XAUUSD is a symbol that indicates how many US dollars a trader would require to buy an ounce of gold.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)