Yellow metal slipped for the second day in a row on MCX as lower demand coupled with a lack of direction due to uncertainty over the US debt ceiling crisis took a toll on the prospects of the precious metal.
The June gold futures were trading at Rs 59,893 per 10 grams on the MCX and were down by Rs 348 or 0.58% from Monday’s closing price. Meanwhile, the July Silver futures were trading at Rs 72,235 per kg and were trading Rs 498 or 0.68% lower at 11 am.
Gold prices in Delhi were around Rs 61,500 per 10 grams, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities told ET Markets.
On Comex, gold futures were trading at $1,961.90 per troy ounce, down by $15.30 or 0.77% while silver futures were trading at $23.625 per troy ounce, down by $0.236 or 0.99%.
“Gold prices edged lower with spot gold at Comex was trading down by 0.45% at $1,963 per ounce in the morning trade. Gold prices declined for a second consecutive day amid optimism that the US will reach a debt ceiling deal and avoid debt default,” Saumil Gandhi, Senior Analyst (Commodities) at HDFC securities said.
“Additionally, investment demand continues to slide. ETFs cut 8,528 troy ounces of gold from their holdings in the last trading session, bringing this year’s net purchases to 109,681 ounces. This was the sixth straight day of declines, the longest losing streak since March 7,” Gandhi added.MCX Gold June futures have support at Rs 59,700-59,540 per 10 grams and resistances at Rs 60,300-60,480, the HDFC Securities analyst said.
“We expect gold to trade higher towards 60,620 levels, a break of which could prompt the price to move higher to 60,830 levels,” Prathamesh Mallya, Deputy Vice President Research, Non-agri Commodities & Currency, Angel One said.
MCX Gold futures have gained 9.62% or Rs 5,290 on the year-to-date basis while 0.53% or Rs 317 on the month-to-date basis, Gupta said. As for silver futures, the YTD gains stand at 4.84% or Rs 3,355 while this precious metal has lost nearly 1.93% or Rs 1,430 in May so far.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX June Gold futures at Rs 59,800 with a stop loss of Rs 59,550 and price target of Rs 60,200
– Sell MCX July Silver futures at Rs 72,800 with a stop loss of Rs 73,600 and price target of Rs 71,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)