Gold traded with minor gains on Wednesday having fallen to a two week low on Tuesday ahead of Dhanteras as the risk premium of the ongoing Israel-Hamas war loses steam.
The Street now awaits cues on interest rate outlook from the US Federal Reserve. While the Central Bank left interest rates unchanged in the last policy meeting, the recent assertions by the Federal Reserve Bank of Minneapolis President Neel Kashkari that Fed will likely have to do more work to control inflation is making the Street jittery.
MCX December gold futures were trading at Rs 60,431 per 10 gram, up by Rs 84 or 0.14% from the Tuesday closing price. Meanwhile, the December silver futures were trading at Rs 70,654 per kg, lower by Rs 20 or 0.03%.
On Comex, gold futures were trading at $1,975.30 per troy ounce on Wednesday, up by $1.80 or 0.09% while silver futures were trading at $22.640, up by $0.051 or 0.230%.
The dollar index was trading flat at 105.56 against a basket of top six currencies, up by 0.02 points or 0.02%.
The December gold futures ended at Rs 60,375. on the MCX on Tuesday, down by Rs 395 or 0.65% while the December Silver futures settled at Rs 70,655, lower by Rs 1,462 or 2.03%.
“Gold prices corrected sharply on Tuesday to a two week’s low level at Rs 60,347 levels. We noticed profit booking in the gold and silver prices as traders are booking profit on higher levels before Diwali. Silver was corrected by 2.22% and closed at Rs 70,634 levels,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.He sees gold trading between $1,960 and $1,975 on the Comex while between Rs 60,000 and Rs 60,500 levels on the MCX.
Gold futures on the MCX have declined by 0.97% or Rs 593 per 10 gram on the month-to-date basis, Gupta said.
They were up by 9.69% or Rs 5,330 on the year-to-date basis as on Tuesday, November 7 on the closing price basis. Meanwhile, Silver futures have lost nearly Rs 1,035 or 1.44% in value terms in November while gaining by 1.76% or Rs 1,221 on the YTD basis, the commodity and currency analyst said.
On the daily chart, the December gold contract is establishing a pattern of lower high lower low and is trading above its 100-day and 200-day Exponential Moving Average (EMA), Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. Moreover, the Relative Strength Index (RSI) is also forming a pattern of lower high lower low, indicating a bearish sentiment, she added.
She sees resistance at Rs 60,600-61,200 while support at Rs 60,200-59,800.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX December Gold futures at Rs 60,350 with a stop loss of Rs 60,700 and a price target of Rs 60,000.
– Sell MCX December Silver futures at Rs 70,800 with a stop loss of Rs 71,800 and a price target of Rs 69,000.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 60,450 with a stop loss of Rs 60,600 and price target of Rs 60,125
– Buy MCX September Silver futures at Rs 71,150 with a stop loss of Rs 71,700 and price target of Rs 70,200.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,300 per 10 gram while those of 1 kg of Silver is Rs 72,000.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)