Gold made minor recovery after initial jitters which saw yellow metal slipping in the red in the opening trade on Friday. MCX February gold futures were trading at Rs 62,670, up by Rs 30 or 0.05% from the Thursday closing price. Meanwhile, the March Silver futures were trading at Rs 77,618 per kg, higher by Rs 103 or 0.13%.
Notwithstanding a range bound trade gold is expected to close with third weekly gains, thanks to the weakness in dollar index (DXY) which has fallen 1.6% in a month and is trading near 10 week lows. On Thursday, it slipped below the 103 mark against a basket of top six currencies, while clawing its way back on Friday.
On Comex, Gold futures last traded at $2,041 per troy ounce, up by $3.20 or 0.16% while Silver futures were trading at $25.285, higher by 0.002 or 0.010%.
“Gold is set for a third weekly gain, supported by signs of a cooling US economy. The Federal Reserve’s inflation gauge rose 0.2% in October, aligning with expectations. Despite a 0.4% dip on Thursday, gold remains near its record high, boosted by factors like the Israel-Hamas conflict and falling treasury yields,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Silver is also on track for a third weekly gain, with platinum and palladium seeing increases as well, she added.
On the daily chart, the December Gold contract is forming higher highs and higher lows indicating bullishness in the market while MACD indicator has also shown a positive crossover suggesting bullish sentiments, Qureshi said.
The Anand Rathi analyst sees resistance at Rs 63,000-63,450 while support at Rs 62,400-61,900.Gold futures on the MCX have gained by 2.79% or Rs 1,700 per 10 gram on the month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. They were up by 13.78% or Rs 7,583 on the year-to-date basis as on Wednesday, November 29 on the closing price basis. Meanwhile, Silver futures have gained nearly Rs 5,846 or 8.16% in value terms in November while gaining by 11.75% or Rs 8,155 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 63,000 per 10 gram while those of 1 kg of Silver is Rs 79,500. Click to know more
Intraday Trading Strategy by Neha Qureshi
– Buy MCX February Gold futures at Rs 62,600 with a stop loss of Rs 62,200 and a price target of Rs 63,100.
– Buy MCX March Silver futures at Rs 77,500 with a stop loss of Rs 76,500 and a price target of Rs 79,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)