MCX Gold futures edged higher on Tuesday as the fears around US default rose amid debt ceiling crisis. The June Gold futures were trading at Rs 60,387 per 10 grams, up by Rs 143 or 0.24% in the early trade. Meanwhile July Silver futures were also in the green at Rs 72,668 per kg, up by Rs 83 or 0.11% from the last closing price.
On the Comex, gold futures were trading at $1,995.10 per troy ounce, up by $2.10 or 0.11% while Silver futures were trading at $23.935 per troy ounce, up by $0.042 or 0.180%.
The near-term outlook for bullion remains mixed as the better than expected US economic data could neutralise gains arising out of the debt ceiling crisis. Moreover, the Dollar Index is hovering over 102.
The US debt ceiling issue may create volatility and yellow metal is vulnerable to further losses, Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas said. He sees key support is at $1,969, while resistance at $2,000 – $2023.
MCX Gold futures have gained 9.80% or Rs 5,389 on the year-to-date basis while 0.70% or by Rs 417 on the month-to-date basis, Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities said. As for silver futures, the YTD gains stood at 4.74% as of Tuesday closing price at Rs 3,286 while this precious metal has lost nearly 2.02% or Rs 1,449 in May.
Intraday Trading Strategy by Anuj Gupta
– See MCX June Gold futures at Rs 60,600 with a stop loss of Rs 60,850 and price target of Rs 60,000
– Sell MCX July Silver futures at Rs 73,100 with a stop loss of Rs 73,000 and price target of Rs 72.000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)