Domestic gold prices edged up on Tuesday, tracking gains in the international market and amid a softer US dollar. Investors await this week’s US inflation data for further cues as that could influence the Federal Reserve’s monetary policy trajectory.
MCX June gold futures were trading at Rs 60,380 per 10 grams at 10:45 am, up Rs 317 or 0.53%. Meanwhile, May Silver futures rose Rs 523 or 0.70% to Rs 74,846 per kg.
The June gold futures ended at Rs 60,038 on Monday, down Rs 473 or 0.78% while the May Silver futures settled at Rs 74,324, down Rs 246 or 0.33%.
The dollar index was 0.1% lower, making the bullion less expensive for other currency holders, Reuters reported. Spot gold was up 0.2% at $1,994.48 per ounce, as of 0036 GMT. US gold futures rose 0.1% to $1,994.60, the Reuters report said.
A strong US employment report released on Friday triggered a fall in the bullion prices in the previous session, raising fears over the likelihood of yet another interest rate hike when the Fed meets next on May 2nd and 3rd.
“Comex Spot Gold edged below the $2000 level in the last session, as better-than-expected non-farm payroll data print that was released last Friday raised the bet of another 25 bps rate hike by the Fed. The dollar index bounced off its recent low, which dragged gold prices lower,” Deveya Gaglani, Research Analyst – Commodities at Axis Securities said.
Gold prices have corrected by over 2% or Rs 1,150 from all-time high levels as of Monday’s close. The all-time high of MCX gold futures stands at Rs 61,181 per 10 grams. Meanwhile, silver futures last week hit their highest level (Rs 75,175 ) in 32 months on an intraday basis.Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a buy-on-dips strategy.
Prathamesh Mallya, Assistant Vice President, Research, Non-Agri Commodities, and Currencies at Angel One expects gold to trade lower towards Rs 59,660 levels, a break of which could prompt the price to move lower towards Rs 59,370 levels.
“Comex Gold is likely to touch the $2,080 level if the $1,940 level is intact on the lower side. In the Domestic market, support is seen around the Rs 59,000 level and resistance is placed at the Rs 61,000 level,” Gaglani of Axis Securities said.
Intraday Trading Strategy by Anuj Gupta
While spelling out the day’s trading strategy, Gupta advised investors with a near-term view to remain on the buying side. Correction is an opportunity to invest in bullion, he said. He sees gold prices hitting the Rs 62,000 mark in April.
- Buy MCX June Gold futures at Rs 59,750 with a stop loss of Rs 59,500 and price target of Rs 60,350.
- Buy MCX May Silver futures at Rs 73,800 with a stop loss of Rs 73,000 and price target of Rs 74,900.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)