MCX Gold prices got a breather on Friday from the ongoing correction as the dollar index slipped slightly. Gold traded with a positive bias at the market opening time.
The MCX December gold futures were trading up by Rs 7 or 0.01% from the Thursday closing price at Rs 57,853 per 10 gram on the MCX while the December Silver futures were trading at Rs 71,285 per kg, higher by Rs 685 or 0.97%.
The dollar index (DXY) was hovering near 106.05 against a basket of six major currencies, down by $0.18 or 0.17%.
Gold futures are down 3.78% or by Rs 2,246 on the month-to-date basis while they have gained 3.84% or by Rs 2,111 on the year-to-date basis, Anuj Gupta, Head Commodity & Currency at HDFC Securities told ETMarkets.
As for silver futures, the declines are to the tune of 6.71% or Rs 5,082 in September while the gains this year stand at 1.71% or Rs 1,187, he said.
On Comex, gold futures were trading at $1,891.20 per troy ounce on Thursday, up by $0.30 or 0.02% while Silver futures were at $22.695, higher by $0.029 or 0.130%. The comex prices are at a month lows.
The October gold futures had ended with declines of Rs 440 or 0.75% per 10 gram at Rs 57,843 while the December Silver futures closed lower at Rs 70,610, down by Rs 61 per kg or 0.09% on a holiday curtailed trading session.”As expected, Gold prices fell sharply and closed at 6 month’s low level of Rs 57,128 levels on the back of strength in dollar index which is trading at 10 month high level at 106 levels and it is putting pressure on gold as demand is shifting from gold to dollar,” Gupta said.
The HDFC Securities analyst sees gold trading at $1,855-$1,850 on the Comex while between Rs 56,800 and Rs 57,500 on MCX.
It may test levels of $1,855-$1,850 given the strength in dollar index which has been on the up due to hawkish statements given by the Fed in the latest monetary policy.
The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 58,800 per 10 gram while Rs 72,500 for silver.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs ,with a stop loss of Rs 58,120 and a price target of Rs 57,570
– Sell MCX December Silver futures at Rs 70,950 with a stop loss of Rs 70,400 and a price target of Rs 72,040.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)