Gold fell in the opening trade on Monday ahead of the US Federal Reserve’s policy meeting outcome due on Wednesday.
The MCX April gold futures were trading at Rs 65,352 per 10 grams, down Rs 190 or 0.29% while the May Silver contracts were trading at Rs 75,356 per kg around 9:10 am, lower by Rs 294 or 0.39%. Track prices here
The price of April Gold contract is now down by Rs 1,079 from its lifetime peak of Rs 66,356. This correction could be attributed to an uptick in the dollar index (DXY) which was hovering around 103.42 today, down by 0.01 or 0.01%. It has appreciated by 0.54% over the previous five sessions.
The prices have risen by 4.29% or Rs 2,690 on MCX month-to-date, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. On a year-to-date basis, the uptick is Rs 2,057 or 3.25%. As for the Silver contract, the MTD gains stand at 5.58% or Rs 3978 while the YTD gains at 1.11% or Rs 824, Gupta added.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 65,800 per 10 grams while that of 1 kg of silver is Rs 76,500, Gupta said. Know more here
MCX Gold and Silver ended with minor gains on Friday with the former settling with an uptick of Rs 3 per 10 gram at Rs 65,545 while the latter ending up by Rs 3 at Rs 75,226 per kg.”Gold is expected to trade with a slight negative bias at the start of the week on the US inflation concerns, ahead of the Fed’s monetary policy decision due Wednesday,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas said.He said that the monetary policy decisions of four key central banks lined up starting with the Bank of Japan’s monetary policy decision on March 19 is expected to weigh on the fortunes of yellow metal this week.
On the Daily chart, MCX April Gold futures are exhibiting an ‘Evening Star’ candlestick configuration and the price has failed to hold above the Rs 66,044 mark, encountering a resistance at this level which signals a bearish outlook, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
Additionally, the Relative Strength Index (RSI) is in the overbought territory and is demonstrating a pattern of lower highs and lower lows, indicating a potential correction in price, she added. The Anand Rathi analyst sees key resistance at Rs 65,830 – Rs 66,044 with support levels placed at Rs 65,055 – Rs 64,680.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX April Gold futures at Rs 65,500 with a stop loss of Rs 66,000 and a price target of Rs 65,000.
– Buy MCX May Silver futures at Rs 75,600 with a stop loss of Rs 74,600 and a price target of Rs 77,600.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)