Gold bounced back slightly on Tuesday amid a downturn in the dollar index (DXY) even as investors remained wary ahead of the crucial US inflation numbers due for an announcement later this week.
Taking cues from the international market, MCX February gold futures were trading with a positive bias in the opening trade. They were hovering around Rs 62,231 per 10 grams, up by Rs 136 or 0.22% from Monday’s closing price. Meanwhile, the March Silver futures were trading at Rs 72,507 per kg, higher by Rs 80 or 0.11%. Click to know more
Comex Gold futures were trading at $2,039.60 per troy ounce on Tuesday, up by $6.10 or 0.30% while Silver futures were trading at $23.335, lower by $0.025 or 0.110%.
The dollar index (DXY) was trading slightly lower at 102.15 against a basket of six top currencies, down by 0.06 points or 0.06%. It has declined by 0.05% in the past five sessions conceding all its gains.
On Monday, the MCX Gold February contract closed at Rs 62,080, down by Rs 15 or 0.02% while the March Silver futures settled at Rs 72,450, lower by Rs 137 or 0.19%.
“Gold prices stabilised after a nearly 1% drop on Monday, as investors adjusted expectations for when the Federal Reserve might cut interest rates. Recent US economic data and Fed minutes have led to speculation about the timing. The market now sees a 58% chance of a March rate cut, down from 67% last week. Gold, holding above $2,000 an ounce since mid-December, reflects uncertainty about when the Fed will act. Thursday’s US inflation data could offer more insights,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
On the daily chart, the MCX February Gold contract has given a breakdown of its rising channel indicating bearishness with the MACD giving a negative crossover which indicates bearish sentiments, Qureshi said. Currently, the price is trading below its 21 & 50 DEMA which also indicates bearish sentiments with the RSI forming a lower high and lower low pattern which adds to her bearish outlook. The Anand Rathi analyst sees resistance around Rs 62,530 – Rs 63,080 while support around Rs 61,770 – Rs 61,000.
After ending 2023 with gains of 15.22% or by Rs 8,372 per 10 gram, MCX gold futures have started this year on a weak note and have carried the sluggishness into the second week as well, Anuj Gupta, Commodity & Currency Head at HDFC Securities said. Gold is down by 1.75% or by Rs 1,108 from the 2023 closing price while Silver futures have corrected by 2.69% or Rs 2,003 per kg in the last two sessions, the Commodity & Currency Head at HDFC Securities said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad, and other cities is Rs 63,000 per 10 grams while that of 1 kg of Silver is Rs 74,000.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,100 with a stop loss of Rs 62,500 and a price target of Rs 61,500.
– Sell MCX March Silver futures at Rs 72,400 with a stop loss of Rs 73,400 and a price target of Rs 70,800.
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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)