MCX Gold futures were trading flat with a positive bias on Wednesday as the strength in Dollar Index (DXY) did not let the yellow metal rise appreciably. The gold is expected to inch higher though the gains may remain capped in the near term.
The June gold futures were trading at Rs 60,030 per 10 grams, up Rs 32 or 0.05% from Tuesday’s closing price while July silver futures were up Rs 343 or 0.48% at Rs 71.386 per kg on the MCX around 12:15 pm.
“Gold prices recovered from their lowest level in more than two months as the dollar retreated from recent highs, while persistent fears about the US debt ceiling negotiations kept investors on edge and revived demand for the safe-haven metal,” Prathamesh Mallya, Deputy Vice President, Research – Non-Agro Commodities & Currency at Angel One said.
He expects gold to trade higher towards Rs 60,360 levels, a break of which could prompt the price to move higher to Rs 60,530 levels.
Given the solid economic data, markets are now pricing in a 59.4% chance of the US Fed hiking rates at its June meeting, he said.
On the other hand, Saumil Gandhi, Senior Analyst (Commodities) at HDFC securities said that he expected a rangebound trade to continue in gold prices. He sees support at Rs 59,480-Rs 59,270 in MCX Gold August futures and resistances at Rs 60,080-Rs 60,450.
As for Comex spot gold futures, they are likely to trade in the range of $1,935 to $1,970 per troy ounce for the day. Comex spot gold has support at $1,935-$1,923 per ounce and resistance at $1,970-$1,984 per ounce for the day, Gandhi said.Comex Gold was last seen trading at $1,963.20 and was up by $5.20 or 0.27% while Silver was trading at $23.450, higher by $0.211 or 0.910%.
Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities sees a buying opportunity in MCX gold and silver.
Gold futures on the MCX have declined by 0.01% per 10 gramS in May, Gupta said. They are up by 9.05% or Rs 4,976 on a year-to-date basis, he said. Meanwhile, silver futures have lost nearly Rs 3,083 or 4.16% in value terms in May while gaining by 2.45% or Rs 1,702 on the YTD basis, Gupta added.
The price of physical gold in Delhi and Ahmedabad is around Rs 61,000 per 10 gramS while that of silver is Rs 72,500 per kg, Gupta of IIFL Securities said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX June Gold futures at Rs 59,800 with a stop loss of Rs 59,450 and price target of Rs 60,500
– Buy MCX July Silver futures at Rs 70,800 with a stop loss of Rs 70,250 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)