Gold fell on Monday amid strength in dollar index and uptick in bond yields. Yellow metal prices were down on the MCX and Comex as the markets begin to price-in the Israel-Hamas conflict.
MCX December gold futures traded in the red on Monday at Rs 60,537 per 10 gram, up by Rs 191, or 0.33%. Meanwhile, the December Silver futures were trading at Rs 72,543 per kg, higher by Rs 366 or 0.50%.
On Comex, Gold futures were trading at $1,984.50 per troy ounce on Monday, up by $9.40 or 0.47% while Silver futures were at $23.405, higher by $0.094 or 0.400%.
The dollar index was trading at 106.30 against a basket of top six currencies and was up by $0.06 or 0.05% from the last closing.
MCX December Gold futures hit 5 month high levels last week ending with second consecutive weekly gains.
“The price of gold has risen by nearly 8% since the Israel-Hamas attack started, almost reaching $2,000 per ounce. On Monday, it fell by 0.9% as concerns eased, and rising treasury yields, which typically affect gold negatively, also played a role. Additionally, comments from the Federal Reserve indicated a potential end to their tightening measures, and all of these factors contributed to the fluctuations in gold prices,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities sees the overall trend in gold to remain up as the war situation was still on which could give support to gold prices further in his view. Gold is expected to trade between $1,960 to $1,980 levels on Comex while at Rs 60,000-61,000 on MCX, he added.The MCX gold futures have gained by 6.38% or Rs 3,650 per 10 gram on the month-to-date basis while their gains in 2023 stand at 10.30% or Rs 5,800, Gupta said. As for Silver futures, the uptick in October is around 4.36% or Rs 3,045 while the year-to-date gains stand at Rs 4.82% or 3,473 per kg.
On the daily chart, Gold December futures are establishing a pattern of higher highs and higher lows and have successfully broken above their 100-day and 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 61,200-61,500 while support at Rs 60,000-59,600.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,300 per 10 gram while those of 1 kg of Silver is Rs 75,000.
Gupta and Qureshi took a contrarian strategy for today’s trade
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 60,500,with a stop loss of Rs 60750 and a price target of Rs 60,180.
– Sell MCX December Silver futures at Rs 72,550 with a stop loss of Rs 73,050 and a price target of Rs 71,750.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 60,700 with a stop loss of Rs 60,300 and a price target of Rs 61,200.
– Buy MCX December Silver futures at Rs 73,000 with a stop loss of Rs 72,000 and a price target of Rs 75,000.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)