Gold traded in a tight range on Tuesday as investors waited for more economic data in the US to gauge which way the Federal Reserve could move. While a few Fed officials have pushed back against surging market expectations of rate cuts, markets are still pricing in about a 69% chance of a Fed rate cut in March, according to the CME FedWatch tool, Reuters reported. Lower interest rates support non-yielding bullion.
Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 62,115 per 10 grams in the opening trade, down Rs 176 or 0.28% from Monday’s closing price. Meanwhile, the March Silver futures were trading at Rs 74,450 per kg, rising Rs 40 or 05%. Click to know more
On Comex, Gold futures were trading at $2,037.90 per troy ounce, down $2.60 or 0.13% while Silver futures were trading at $24.130, rising $0.023 or 0.10%.
The dollar index (DXY) was down $0.01 or 0.01% against a basket of six top currencies and hovering around 102.56. The DXY has fallen nearly 1.26% in the past five sessions.
On Monday, MCX February contract closed at Rs 62,180, down by Rs 111 or 0.18% while the March Silver futures settled at Rs 74,405, down by Rs 5 or 0.01%.
“We have noticed subdued markets before Christmas and new year festivals in international markets. However, the rupee is trading at 3 month high levels against the dollar that has curbed the appreciation in local bullion prices,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
He sees Comex gold trade between $1,920 and $1,935 today with a positive bias while at Rs 61,800 – Rs 62,500 on the MCX. As for MCX Silver, a trading range between Rs 73,500 and Rs 75,000 is expected.On the daily chart, the MCX Gold December contract is forming a higher high and higher low pattern indicating bullishness with the price currently trading above its 21 & 50 Days EMA, Qureshi said. Moreover, the Relative Strength Index (RSI) is forming a positive divergence, indicating a bullish outlook, she added.
The Anand Rathi Analyst sees resistance at Rs 62,600 – Rs 63,000 and support around Rs 61,540 – 61,000.
Gold futures on the MCX have lost 0.56% or Rs 349 per 10 grams on a month-to-date basis, Gupta said. They were up by 13.22% or Rs 7,274 on a year-to-date basis. Meanwhile, Silver futures have declined nearly Rs 3,105 or 4.01% in value terms in December while gaining by 7.20% or Rs 4,997 on the YTD basis, the commodity and currency analyst said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad, and other cities is Rs 63,000 per 10 grams while those of 1 kg of Silver is Rs 76,000.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX February gold futures at Rs 62,200 with a stop loss of Rs 62,380 and a price target of Rs 61,850.
– Buy MCX March silver futures at Rs 74,650 with a stop loss of Rs 75,350 and a price target of Rs 73,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)