Gold prices slipped on Wednesday amid profit booking after hitting their lifetime high in the previous session in the international and domestic markets. In the early trade, MCX gold fell Rs 460/10 grams after scaling a new peak of Rs 65,140 per 10 grams in a back-to-back rally.
Taking cues from the international prices, MCX April gold futures were trading at Rs 64,713 per 10 grams today, down Rs 132 or 0.20% while the May Silver contracts were trading at Rs 73,082 per kg, down Rs 292 or 0.40%.
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On the Comex, gold futures hit $2,141.79 per ounce, surpassing their previous peak of $2,135.39 while on the MCX, the yellow metal experienced a back-to-back rally. Gold futures were trading at $2,089.10 per troy ounce, down by $6.60 or 0.21% while Silver futures were hovering at $23.260 per troy ounce, lower by $0.104 or 0.450%.
The gains in gold and silver prices have been on hopes of an interest rate cut by the US Federal Reserve in June after softer economic data lifted Street’s sentiments. Silver, on the other hand, hit the day’s high of Rs 74,439 per kg which is still far from its all-time high of Rs 79,566.
Gold has gained on softening of the dollar index (DXY) which has once again slipped below the 104 mark. Today It was trading flat at 103.80 against a basket of six top currencies. Its value has depreciated by 0.15% in the last five trading sessions.
On Tuesday, MCX Gold April contract closed at Rs 64828, sliding Rs 17 or 0.03% while the May Silver futures settled at Rs 73,350, lower by Rs 24 or 0.03%.
“Gold prices reached a peak of $2,140, while silver touched a high of $24.25 in international markets. Market participants are exhibiting caution with gold at record-high prices. The upcoming speech by the Fed Chairman regarding inflation and potential interest rate adjustments is anticipated to be a significant indicator for the direction of precious metal markets,” Rahul Kalantri, Vice President, Commodities at Mehta Equities said. He expects price volatility in gold and silver today.
Kalantri sees support in Comex Gold at $2,098-$2,082 while resistance at $2,124-$2,140. As for silver, support is seen at $23.40-$23.20 while resistance is at $23.82-$23.98.
“The prices are expected to continue their bullish momentum till $2,150 (Rs 65,500 on MCX) in the short term,” Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions said. The long-term bullish view is still intact with a target of $2,300 (Rs 70,000 on MCX) in Gold in 2024, Kothari said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 66,000 per 10 grams while that of 1 kg of Silver is Rs 75,500, Gupta said.
“On the daily charts, MCX April Gold futures is exhibiting a pattern of higher highs and higher lows which suggests a bullish trend”, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said even as she warned against the RSI which is currently in the overbought territory, hinting at a potential pullback in prices.
The price is positioned above its 21 and 50-day Exponential Moving Averages (EMAs) indicating strength in the ongoing trend, Qureshi said, placing resistance at Rs 65,040-65,270 while support at Rs 64,500-64,300.
Intraday trading strategy by Neha Qureshi
– Buy MCX April Gold futures at Rs 64,800 with a stop loss of Rs 64,400 and a price target of Rs 65,300.
– Buy MCX May Silver futures at Rs 73,400 with a stop loss of Rs 72,400 and a price target of Rs 75,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)