Gold traded in the red on Thursday amid a positive bias in the dollar index (DXY) which is still hovering above the 102 mark against a basket of top six currencies. Anticipation of further rate hikes along with Fitch downgrade in the US credit rating has kept the yellow metal on tenterhooks and prevented it from taking any decisive course.
The October gold futures were trading with declines at Rs 59,393 per 10 grams on the MCX in the opening trade, down Rs 78 or 0.13%. Meanwhile, September Silver futures were trading at Rs 72,616, down Rs 344 or 0.47%. MCX gold ended with minor gains on Wednesday, while silver futures fell sharply by 1.37% or Rs 1,010.
On the Comex, Gold futures were trading at $1,972.10 per troy ounce on Thursday, down $2.90 or 0.15% while Silver futures trading at $23.820, up $0.052 or 0.220%.
“Spot gold closed with a loss of 0.41% at $1,936 on Wednesday. The ten-year US yields rocketed higher to a fresh cycle high of 4.129% before settling at 1.26% up at 4.086%, though two-year yields fell by 0.42% to 4.885%. The US Dollar Index closed 0.58% higher at 102.60,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said.
A strong US non-manufacturing ISM report may further pressurise the yellow metal as the outlook is weak, he said while putting immediate support at $1,935 – $1,918 and the next major support at $1,890 and the resistance at $1,950 – $1,965.
Talking about the technicals, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies sees gold futures on a daily time frame in an ascending trend line witnessing a recent rebound from support. She recommends a close watch near the trend line for a downward breach. “RSI double top indicates possible reversal. MACD negative crossover suggests downside, she said putting a support at Rs 58,800 – 58,300 while resistance at Rs 60,000 – Rs 60,400.She warns of a potential bearish market ahead.
“Gold futures on the MCX have gained by 0.18% or Rs 105 per 10 grams on a month-to-date basis. They were up by 7.99% or Rs 4,427 on the year-to-date basis,” Market Expert Anuj Gupta said. “Meanwhile, Silver futures have lost nearly Rs 2,467 or 3.27% in value terms on the first trading session in August while gaining by 5.11% or Rs 3,547 on the YTD basis,” he added.
The price of physical gold in bullion markets in Delhi-NCR is around Rs 60,500 per 10 grams while that of Silver is Rs 74,500 per kg, Gupta said.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX October Gold futures at Rs 59,200 with a stop loss of Rs 59,000 and a price target of Rs 59,700
– Buy MCX September Silver futures at Rs 72,000 with a stop loss of Rs 71,450 and a price target of Rs 73,500.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)