Gold and silver contracts resumed trading on Tuesday after a four-hour delay amid a technical glitch that forced a shutdown of trade on the Multi Commodity Exchange (MCX).
Bullion started on a positive note at 1 pm today with MCX April gold futures trading at Rs 62,270 per 10 grams at 1:30 pm, up nearly Rs 200 or 0.31% while the March Silver contracts were trading at Rs 71,334 per kg, rising Rs 325 or 0.46%.
The cues from international markets were positive around this time. On the Comex, gold futures were trading at $2,037.90 per troy ounce, up $4.90 or 0.24%, while Silver futures were hovering at $22.885 per troy ounce, up by $0.118 or 0.520%.
The gains have been on the back of a steady dollar index (DXY) which has remained flat over the last five trading sessions. Today, it was hovering around the 104.18 mark, up 0.01 points or 0.01%.
Also Read: MCX commences trading after a four-hour delayOn Monday, MCX Gold April contract closed at Rs 62,090, up by Rs 12 or 0.02% while the March Silver futures settled at Rs 71,049, up by Rs 40 or 0.06%.Gold’s year-to-date (YTD) losses are at Rs 1,125 per 10 grams or 1.78% while month-to-date (MTD) declines stood at Rs 657 or 1.05%, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. As for Silver, the YTD stood at Rs 3,421 per kg or 4.60% while MTD declines are at Rs 1,238 or 1.71%, he added.
“Gold prices were stable as investors awaited inflation data set to be released on Tuesday. This data could indicate when the US Federal Reserve might begin to reduce interest rates. The expected inflation rate for January is below 3% for the first time since March 2021, which could mean the Fed might start easing monetary policy soon,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
She said that the US treasury bonds, which are predicted to improve in the next month could be good news for gold.
On the daily chart, the MCX April Gold contract has shown a breakdown from its upward channel formation, signaling a bearish trend and presently, it is trading beneath the 21-day and 50-day Double Exponential Moving Averages which now serve as barriers, Qureshi said.
RSI’s bearish divergence along with the MACD’s bearish crossover reinforce Qureshi’s negative outlook on the yellow metal. She sees key resistance levels at Rs 62,200-62,510 while support at Rs 61,800-61,450.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63000 per 10 grams while those of 1 kg of Silver is Rs 72,500.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX April Gold futures at Rs 62,100 with a stop loss of Rs 62,500 and a price target of Rs 61,600.
– Buy MCX March Silver futures at Rs 71,000 with a stop loss of Rs 70,000 and a price target of Rs 73,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)