Glitter in gold is rising by the day riding on the greenback’s weakness and falling bond yields as Street gets convinced of the likelihood of interest rate cut by the Fed sooner than later.
MCX February gold futures were trading at Rs 62,245 at the opening time, up Rs 60 or 0.10% from Tuesday’s closing price. Meanwhile, the March Silver futures were trading at Rs 75,403 per kg, higher by Rs 124 or 0.60%. Track prices here
On Comex, Gold futures were trading at $2,038.70 per troy ounce, up by $2.40 or 0.12% while Silver futures were trading at $24.560, higher by $0.014 or 0.06%.
The dollar index (DXY) was down $0.11 or 0.10% against a basket of six top currencies and hovering around 103.94. The DXY has fallen by 1.57% in the last one month.
Off their lifetime high of Rs 64,063, the February Gold contract ended Tuesday flat at Rs 62,208, up by Rs 23 or 0.04%. As for Silver futures, the March contract settled at Rs 75,374, down by Rs 95 or 0.13%.
“Gold prices stabilised after a recent 3% drop, with investors considering future interest rates due to a slowdown in the US job market. Concerns about inflation and the possibility of excessive rate cuts initially drove gold to a record high on Monday, but it quickly retreated. The market now suggests a 60% chance of the Fed lowering rates in March,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
On the daily chart, the December Gold contract corrected from its all-time high to around 61,900, close to the 50% Fibonacci Retracement level, Qureshi said, adding that if it falls below Rs 62,540, a sideways to downward momentum is likely on the ambit. The Anand Rathi analyst sees resistance at Rs 62,350 – Rs 62,600 while support at Rs 62,000 – Rs 61,700.
Gold futures on the MCX have lost by 0.73% or Rs 455 per 10 grams on the month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. Meanwhile, Silver futures have declined nearly Rs 2,236 or 2.88% in value terms in December, the commodity and currency analyst said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,700 per 10 gram while those of 1 kg of Silver is Rs 77,000. Click to know more
Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,300 with a stop loss of Rs 62,800 and a price target of Rs 61,700.
– Sell MCX March Silver futures at Rs 76,000 with a stop loss of Rs 77,000 and a price target of Rs 74,000.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX February Gold futures at Rs 62,500 with a stop loss of Rs 62,725 and price target of Rs 61,880.
– Sell MCX March Silver futures at Rs 75,950 with a stop loss of Rs 76,480 and price target of Rs 74,700.
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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)