Gold fell on Tuesday for the second session as the investors looked to capitalise on the gains made over the previous week.
The MCX December gold futures were trading at Rs 59,045 per 10 gram, down by Rs 121, or 0.20%.
Meanwhile, the December silver futures were trading at Rs 70,785 per kg, lower by Rs 252 or 0.58%. Both gold and silver gained over 4% in the week gone by.
On Comex, Gold futures were trading at $1,929.20 per troy ounce on Tuesday, down by $12.30 or 0.63% while Silver futures were at $22.725, higher by $0.170 or 0.74%.
The dollar index (DXY) which has an inverse relation with the gold price movement was trading at 106.30 against six top global currencies and was up by $0.06 or 0.05%.
“Overall the technical trend of gold is sideways to up. The war situation is still unfolding and may give support to gold prices further,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said. He sees trading range on MCX between Rs 58,700 and Rs 59,300 levels.
Gold futures are up 2.72% or by Rs 1,559 on the month-to-date basis while they have gained 7.56% or by Rs 4,141 on the year-to-date basis, Gupta said. As for silver futures, the gains are to the tune of 1.65% or Rs 1,396 in October while the price uptick this year stands at 2.30% or Rs 1,560, 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), 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 a 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 59,700-60,200 while support at Rs 58,655-58,200.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,200 per 10 gram, while the price of 1 kg of silver is Rs 73,800.
Neha Qureshi of Anand Rathi and Gupta of HDFC Securities took opposite intraday strategies.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 59,300 with a stop loss of Rs 59,000 and a price target of Rs 59,700.
– Buy MCX December Silver futures at Rs 71,500 with a stop loss of Rs 70,500 and a price target of Rs 73,500.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 59,125,with a stop loss of Rs 59,300 and a price target of Rs 58,800.
– Sell MCX December Silver futures at Rs 70,850 with a stop loss of Rs 71,180 and a price target of Rs 70,150.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)