Gold traded in a tight range in yet another session on Thursday though the bias was positive following a fall in the dollar index (DXY) ahead of the US inflation print due later today.
Taking cues from the international market, MCX February gold futures were trading in the green, around Rs 62,100 per 10 grams, up Rs 104 or 0.17% from Wednesday’s closing price. Meanwhile, March Silver futures were trading at Rs 72,065 per kg, higher by Rs 96 or 0.13%. Track prices here
Comex Gold futures were at $2,034 per troy ounce on Thursday, up $6.20 or 0.31% while silver futures were at $23.135, higher by $0.069 or 0.300%.
The dollar index (DXY) was trading slightly lower at 102.25 against a basket of six top currencies, down 0.11%. It has remained steady over the past five trading sessions.
“The dollar index has recovered from lower levels after FOMC minutes stated that the time of interest rate cut is not yet confirmed. We also see thin demand for gold and silver in the physical markets,” Anuj Gupta, Head-Commodity & Currency, HDFC Securities said.
“Gold prices held steady as investors awaited a key US inflation report, which could influence Federal Reserve rate decisions. The market is cautious about early rate cuts this year. Traders anticipate turbulent trading based on upcoming US consumer price data. If inflation eases, it may reduce expectations for Fed intervention. Higher yields on US bonds could impact gold negatively,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
On the daily chart, MCX February Gold futures have given a breakdown of its rising channel, forming a lower high and lower low pattern which indicates bearishness with MACD also forming a negative crossover adding to the subdued sentiments, Qureshi said.With 21-day EMA crossing below the 50-day EMA a bearish outlook is only corroborated, she said. The Anand Rathi analyst sees resistance around Rs 62,530 – Rs 63,080 while support at Rs 61,770 – Rs 61,000.
Meanwhile, HDFC Securities’ Anuj Gupta sees Comex gold trading between $2,025 and $2,040 and MCX February contract between Rs 61,700 and Rs 62,500. As for silver, March contracts are expected to trade in the Rs 71,500 – Rs 73,000 price range.
Gold is down by 1.91% or Rs 1,207 from the 2023 closing price while silver futures have corrected by 3.31% or Rs 2,461 per kg in the last two sessions, the Commodity & Currency Head at HDFC Securities said.
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, Gupta of HDFC Securities said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,500 per 10 grams while that of 1 kg of silver is Rs 73,00.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,000 with a stop loss of Rs 62,500 and a price target of Rs 61,500.
– Sell MCX March Silver futures at Rs 72,000 with a stop loss of Rs 73,000 and a price target of Rs 70,000.
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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)