MCX gold traded with strength on Friday, having hit a fresh lifetime high of Rs 61,914 per 10 gram on Thursday and is set to end with weekly gains for the first time in three weeks.
The uptick has ridden on the weaker dollar index (DXY) which has fallen 1.43% in the past five sessions.
A softer than estimated US inflation number has triggered a fall in the greenback and raised gold’s heaven appeal. It has also lifted hopes that the Fed is unlikely to raise interest rates further.
The December gold futures were trading at Rs 60,759 per 10 gram in the early trade, up by Rs 37 or 0.06% from the Thursday closing price. Meanwhile, the December Silver futures were trading at Rs 73,411 per kg, higher by Rs 51 or 0.07%.
On Comex, Gold futures were trading at $1,988.10 per troy ounce on Friday, up by $0.80 or 0.04% while Silver futures were trading at $23.895, lower by $0.038 or 0.160%.
The dollar index was trading flat at 104.34 against a basket of top six currencies, though the bias was negative.
“Gold closed on a positive note on Thursday at Rs 60,722, gaining 1.02% as it made a new lifetime of Rs 61,914. Weakness in the dollar due to weak US unemployment data was one of the reasons behind the gold rally. Dollar index is trading at 10 week’s low level at 104.34,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.Gupta sees gold trading between $1,975 and $1,995 on the intraday basis while between Rs 60,300 and Rs 61,500 levels on the MCX.
Meanwhile, silver is likely to trade between Rs 72,300 and Rs 74,500, the HDFC Securities expert said as he sees the trend in bullion to remain positive and advises traders to buy on dip.
Gold futures on the MCX have declined by 0.35% or Rs 115 per 10 gram on the month-to-date basis, Gupta informed. They were up by 10.37% or Rs 5,705 on the year-to-date basis as on Thursday, November 16 on the closing price basis.
Meanwhile, silver futures have gained nearly Rs 1,691 or 2.36% in value terms in November while gaining by 5.69% or Rs 3,947 on the YTD basis, the commodity and currency analyst said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,500 per 10 gram while those of 1 kg of Silver is Rs 75,500.
Commenting on gold’s price trends visible on technical charts, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said that December Gold contract has shown a pullback from its peak and now has rebounded strongly from its 50 day-EMA indicating bullish sentiments. It is trading above its 100-day and 200-day Exponential Moving Average (EMA) and the Relative Strength Index (RSI) is also forming a positive divergence, indicating a bullish sentiment, she added.
The Anand Rathi analyst sees resistance at Rs 60,600-61,200 while support at Rs 60,000-59,800.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 60,580 with a stop loss of Rs 60,350 and price target of Rs 61,000.
– Buy MCX September Silver futures at Rs 73,100 with a stop loss of Rs 72,680 and price target of Rs 73,980.
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 73,300 with a stop loss of Rs 72,300 and a price target of Rs 75,300.
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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)