Gold traded in the red in the early trade on Monday dragged by an uptick in the dollar index (DXY), which is still hovering around the 104 mark against a basket of six major currencies. The DXY was up 0.06 points or 0.06%. It has depreciated by 0.24% over the last five sessions.
Taking cues from the international prices, MCX April gold futures were trading at Rs 62,229 per 10 gm, down by Rs 116 or 0.19% while the March silver contracts were trading at Rs 70,130 per kg, higher by Rs 349 or 0.50%.
On the Comex, gold futures were trading at $2,041.20 per troy ounce, down by $8.20 or 0.40%, while Silver futures were hovering at $22.825 per troy ounce, lower by $0.157 or 0.680%.
On Friday, MCX Gold April contract closed at Rs 62,325, down by Rs 20 or 0.03% while the March Silver futures settled at Rs 70,450, down by Rs 29 or 0.04%.
“Gold’s price remained stable after experiencing its largest increase in two months, with the market anticipating further details on when the Federal Reserve will begin decreasing interest rates. Despite shifts in expectations for the Fed’s easing timeline, gold has maintained its value this year. The swaps market indicates that investors do not expect a cut in borrowing costs until at least June,” Neha Qureshi, senior technical & derivative analyst at Anand Rathi Commodities & Currencies said.
Gold benefits from lower interest rates since it does not earn interest. The metal has also been supported by a drop in the dollar since February 13, making it more affordable for many buyers, Qureshi said. On the daily timeframe, MCX April Gold futures exhibit a bullish pattern known as ‘Three White Soldiers’ followed by a higher high and higher low pattern, signalling potential upward momentum, she said, estimating that a breakout above the Rs 62,500 mark could further strengthen the bullish sentiment. The Anand Rathi analyst sees key resistance levels at Rs 62,500-62,700 and support at Rs 61,900-61,450.
Gold’s year-to-date (YTD) losses are at Rs 858 per 10 gram or 1.36% while month-to-date (MTD) declines stand at Rs 390 or 0.62%, said Anuj Gupta, head of commodity & currency, HDFC Securities. As for silver, the YTD decline stands at Rs 3,951 per kg or 5.31% while MTD decline is at Rs 1,768 or 2.45, he added.
The price of gold in major physical bullion markets like Delhi and Ahmedabad is Rs 63,000 per 10 gm while that of 1 kg silver is Rs 72,000.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX April Gold futures at Rs 62,300 with a stop loss of Rs 62,000 and a price target of Rs 62,700.
– Buy MCX March Silver futures at Rs 70,400 with a stop loss of Rs 69,400 and a price target of Rs 72,400.
(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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