Gold extended gains on Friday and traded at two-week high levels. The gains were due to weakness in the dollar index (DXY). The MCX December gold futures were trading at Rs 58,050 per 10 grams, up Rs 132 or 0.23%. Meanwhile, the December Silver futures were trading at Rs 69,499 per kg, gaining Rs 425 or 0.62%. MCX gold futures have risen 2.11% or Rs 1,203 this week.
Though the (DXY) has regained the 106 level against six top global currencies and was hovering near 106.39, it was down $0.21 or 0.20%.
On Comex, Gold futures were trading at $1,892.30 per troy ounce on Friday, up $5 or 0.26% while Silver futures were at $22.305, higher by $0.172 or 0.780%.
The December Gold futures ended flat on Thursday, though the bias was negative amid minor hiccups as bond yields went up and the dollar index breached the 106 mark.
Gold futures are up 0.55% or Rs 318 on the month-to-date basis while they have gained 5.72% or Rs 2,901 on the year-to-date basis, Gupta said. As for Silver futures, the declines are 1.12% or Rs 783 in October while the declines this year stand at 0.49% or Rs 339, he said.
“On the daily chart, Gold December futures are establishing a pattern of higher highs and higher lows and have successfully broken above their 200-day Exponential Moving Average (EMA), positioned at 57,713,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, adding that the RSI is also forming a pattern of higher highs and higher lows, indicating bullish sentiment. Moreover, the Moving Average Convergence Divergence (MACD) has produced a positive crossover, signaling bullishness in the market, she added. She sees resistance at Rs 58,375-58,650 while support at Rs 57,713-57,020.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 59,800 per 10 grams while those of 1 kg of silver is Rs 72,500.
Intraday Trading Strategy by Neha Qureshi
Buy MCX December Gold futures at Rs 58,000 with a stop loss of Rs 57,700 and a price target of Rs 58,500
Buy MCX December Silver futures at Rs 69,300 with a stop loss of Rs 68,300 and a price target of Rs 71,300
Intraday Trading Strategy by Anuj Gupta
Buy MCX December Gold futures at Rs 57,700,with a stop loss of Rs 57,450 and a price target of Rs 58,200.
Buy MCX December Silver futures at Rs 68,800 with a stop loss of Rs 68,250 and a price target of Rs 69,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)