Gold traded range bound on Friday in the early trade albeit with a positive bias with minor softening in the dollar index (DXY). The Street now awaits the US Federal Reserve’s commentary on interest rates and economy when it meets next week.
MCX December gold futures were trading flat at Rs 60,955 per 10 gram, up by Rs 3. They are at five month high levels. Meanwhile, the December silver futures were trading at Rs 71,732 per kg, higher by Rs 152 or 0.21%.
On Comex, gold futures were trading at $1,998.20 per troy ounce on Friday, up by $0.80 or 0.04% while silver futures were at $23, higher by $0.092 or 0.40%.
The dollar index was trading at 106.56 against a basket of top six currencies and was down by $0.04 or 0.04% from the last closing.
On Thursday, the December gold futures closed with minor gains at Rs 60,968, up by Rs 16 or 0.03% while the December Silver futures closed at Rs 71,600, higher by Rs 20 or 0.03%.
“The US Central Bank is expected to maintain a status quo. Gold may trade between $1980 and $1995 on Comex and between Rs 60,500 and Rs 61,200 on MCX. Silver may trade between Rs 71,200 and Rs 72,300,” analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
Analyst Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking said that gold has some more upside left according to trends in the daily charts and momentum indicator RSI indicates the same. His advice to the traders is to make fresh buy positions in gold and silver near the given support levels of Rs 60,800-60,500 with a stop loss at the support levels and book profits near the resistance seen at Rs 61,100-61,300. Meanwhile December silver futures have support at Rs 71,200-70400 and resistance at Rs 72,000-72,500.
On the daily chart price continues to see an upside momentum and looking at potential price levels, there is resistance on the upside at approximately 61,130 and 61,500, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. On the downside, support levels are observed around Rs 60,600 and Rs 60,200, she added.
The MCX gold futures have gained by 5.60% or Rs 3,226 per 10 gram on the month-to-date basis while their gains in 2023 stand at 10.56% or Rs 5,809, according to Gupta. As for Silver futures, the uptick in October is around 2.76% or Rs 1,930 while the year-to-date gains stand at Rs 3.42% or 2,374 per kg.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,100 per 10 gram while those of 1 kg of Silver is Rs 73,700.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 61,025,with a stop loss of Rs 61,210 and a price target of Rs 60,750
– Buy MCX December Silver futures at Rs 71,380 with a stop loss of Rs 70,700 and a price target of Rs 72,300.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 60,800 with a stop loss of Rs 60,400 and a price target of Rs 61,200.
– 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.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)