Gold prices fell on Thursday after the US Federal Reserve dashed Street’s hope of any rate cut in March, reiterating its priority of a 2% inflation target. The move strengthened the dollar index (DXY) taking sheen off the yellow metal.
Taking cues from the price movement in the international markets, April MCX gold futures were trading at Rs 62,665 per 10 grams around 9:10 am and were down by Rs 70 or 0.11% while the March Silver futures were trading lower by Rs 140 or 0.19% at Rs 72,107 per kg. Read More
On the Comex, the gold contracts were trading at $2,064.50 per troy ounce, down by $2.90 or 0.14% while silver was hovering near $23.110, higher by $0.059 or 0.250%.
The dollar index (DXY) was trading slightly higher at 103.47 against a basket of six top currencies, up by 0.19 points or 0.19%. It has declined by 0.10% over the past five trading sessions.
On Wednesday, MCX Gold April contract closed nearly flat at Rs 62,746, up by Rs 11 or 0.02% while the March Silver futures settled at Rs 72,252, higher by just Rs 5 or 0.01%.
Also read: Budget 2024-Sensex Live Updates“Gold prices remained stable after comments from the Federal Reserve Chairman Jerome Powell suggested that a rate cut in March is unlikely. Powell indicated a possibility of easing monetary policy in the future but didn’t expect the Fed to be confident about reaching their 2% inflation target by next month. As a result, the likelihood of a March rate cut, as predicted by swap markets, has decreased significantly from earlier this year,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.Despite the reduced chances of an imminent rate cut, gold is still set for a weekly gain as these expectations have been mostly factored into its price, she said.
On the daily chart, MCX April Gold futures have given a breakout of its descending channel forming higher high and higher low while the MACD has given a positive crossover indicating bullish sentiments, Qureshi said. Moreover, the 21-day EMA 21 and the 50-day EMA suggest a bullish outlook and RSI is forming a higher high and higher low pattern which adds to her bearish outlook.
The Anand Rathi analyst sees resistance at Rs 63,000 – Rs 63,400 while support at Rs 62,400 – Rs 62,000.
Gold has narrowed its losses to 0.74% or Rs 468 per 10 gram in 2024, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. Meanwhile, silver futures have also trimmed this year’s losses to 2.83% or Rs 2,183 from 4.13% or Rs 3,076 per kg, he added. 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.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,500 per 10 gram while those of 1 kg of Silver is Rs 74,000. Read More
Intraday Trading Strategy by Neha Qureshi
– Buy MCX April Gold futures at Rs 62,700 with a stop loss of Rs 62,300 and a price target of Rs 63,200.
– Buy MCX March Silver futures at Rs 72,200 with a stop loss of Rs 71,200 and a price target of Rs 74,200.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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