Notwithstanding a Friday uptick, Gold is set to close the week on declines dragged by a higher dollar index (DXY). Today, in the early trade the yellow metal advanced with some softening in the greenback.
Taking cues from the international market, MCX February gold futures were trading at Rs 61,884 per 10 grams, up Rs 115 or 0.19% from the Thursday closing price. Meanwhile, the March Silver futures were trading at Rs 71,626 per kg, marginally higher by Rs 11 or 0.02%.
Comex Gold futures were trading at $2,024.20 per troy ounce on Friday, up $2.60 or 0.13% while Silver futures were trading at $22.845, higher $0.038 or 0.170%.
The dollar index (DXY) was trading slightly lower at 103.34 against a basket of six top currencies, down 0.20 points or 0.19%. It has narrowed its gains to 0.92% over the past five trading sessions.
On Thursday, the MCX Gold February contract closed at Rs 61800, up Rs 31 or 0.05% while the March Silver futures settled flat at Rs 71,658, higher by Rs 43 or 0.06%.
“Gold prices wavered due to uncertainty about the Federal Reserve‘s response to a drop in jobless claims, signaling a strong US job market. This caused the largest weekly gold loss since early December, as traders reconsidered expectations of interest rate cuts amid robust economic data. In early Asian trading, gold remained stable with investors assessing favorable US data. Price volatility was influenced by fluctuating treasury yields,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.From a technical perspective, Quresh said that the daily chart of the MCX February Gold contract is exhibiting a rebound from a critical support zone around the Rs 61,400 level. The current trading position is below both the 21-day and 50-day Daily Moving Averages, with 62,000 acting as a robust resistance level which suggests the likelihood of sideways to upward momentum as long as the range between Rs 61,600 and Rs 61,400 provides strong support, she said. The Anand Rathi analyst sees an immediate resistance zone between Rs 62,000 and Rs 62,200.
Gold has narrowed its losses to 2.05% or Rs 1,296 per 10 grams in 2024, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. Meanwhile, Silver futures have trimmed this year’s losses to 3.73% or Rs 2,776 from 4.13% or Rs 3,076 per kg in the last five sessions, Gupta of 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 said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad, grams and other cities is Rs 62,500 per 10 grams while that of 1 kg of Silver is Rs 73,000.
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 61,300.
– 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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