Gold prices fell on Thursday as investors preferred booking profit in the absence of triggers for bullion. The prices in gold and silver declined despite a weak dollar index (DXY).
MCX December gold futures were trading at Rs 59,901 per 10 gram, up by Rs 108 or 0.18% from the Thursday closing price. Meanwhile, the December silver futures were trading at Rs 70,350 per kg, lower by Rs 700 or 0.99%.
On Comex, gold futures were trading at $1,954.60 per troy ounce on Thursday, down by $3.20 or 0.16% while silver futures were trading at $22.490, up by $0.238 or 1.050%.
The dollar index was trading flat at 105.53 against a basket of top six currencies, up by 0.06 points or 0.06%.
The December gold futures ended at Rs 60,000 on the MCX on Wednesday, down by Rs 347 or 0.58% while the December Silver futures settled at Rs 70,951, lower by Rs 317 or 0.45%.
Gold is witnessing profit booking at higher levels before diwali. It is on account of hawkish statements by the FOMC members on bringing inflation to the 2% target,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
He sees gold futures trading between $1,945 and $1,955 on the Comex while between Rs 59,800 and Rs 60,300 levels on the MCX. As for silver futures the trading range is between Rs 69,000 and Rs 72,000, this analyst said.He sees gold trading between $1,960 and $1,975 on the Comex while between Rs 60,000 and Rs 60,500 levels on the MCX.
Gold futures on the MCX have declined by 1.53% or Rs 931 per 10 gram on the month-to-date basis, Gupta said. They were up by 9.07% or Rs 4,992 on the year-to-date basis as on Wednesday, November 7 on the closing price basis. Meanwhile, Silver futures have lost nearly Rs 619 or 0.86% in value terms in November while gaining by 2.36% or Rs 1,637 on the YTD basis, the commodity and currency analyst said.
On the daily chart, the December Gold contract is establishing a pattern of lower high and lower low and trading above its 100-day and 200-day Exponential Moving Average (EMA), Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. Moreover, she sees bearish sentiments to prevail on account of the Relative Strength Index (RSI) also forming a pattern of lower high and lower lows.
She places resistance at Rs 60,600-61,200 while support at Rs 60,200-59,800.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 60,700 per 10 gram while those of 1 kg of Silver is Rs 72,200.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX December Gold futures at Rs 60,050 with a stop loss of Rs 60,400 and a price target of Rs 59,500.
– Sell MCX December Silver futures at Rs 71,000 with a stop loss of Rs 72,000 and a price target of Rs 69,000.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX October Gold futures at Rs 60,080 with a stop loss of Rs 60,200 and price target of Rs 59,650.
– Sell MCX September Silver futures at Rs 70,900 with a stop loss of Rs 71,400 and price target of Rs 69,750.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)