Gold opened on a cautious note on Thursday though the bias was negative. Street awaits key inflation data in the US to take a call on their bets. Meanwhile, the dollar index traded with a slightly positive bias having slipped below the 103 mark, its lowest in three months.
Taking cues from the international prices, MCX February gold futures opened in the red and were trading at Rs 62,730 per 10 gram, down by Rs 78 or 0.12% from the Wednesday closing price. Meanwhile, the March Silver futures were trading at Rs 77,186 per kg, lower by Rs 88 or 0.11%.
On Comex, Gold futures last traded at $2,043.90 per troy ounce, down by $3.20 or 0.16% while Silver futures were trading at $25.085, higher by 0.013 or 0.050%.
The dollar index was trading at 102.80 against a basket of top six currencies, marginally up by $0.03 or 0.03%.
After hitting the life high of Rs 62,934 on Wednesday, MCX February Gold contract settled at Rs 62,815, up by Rs 7 or 0.01% while March silver contract closed at Rs 77,280 on the same day, up by Rs 6 or 0.01%.
Gold is expected to trade between $2,040 and $2,055 on the Comex while at Rs 61,800-62,800 on the MCX while Silver may trade between Rs 76,000-78,000, Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
Gold futures on the MCX have gained by 2.73% or Rs 1,665 per 10 gram on the month-to-date basis, Gupta informed. They were up by 13.79% or Rs 7,588 on the year-to-date basis as on Wednesday, November 29 on the closing price basis. Meanwhile, Silver futures have gained nearly Rs 5,605 or 7.82% in value terms in November while gaining by 11.32% or Rs 7,681 on the YTD basis, the commodity and currency analyst said.
Investors are driving up gold prices as they anticipate the Federal Reserve cutting interest rates next year, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. She is of the view that traders are now preparing for a challenging economic scenario, with some expecting aggressive Fed policy easing.
On the daily chart, Gold December contract is forming a higher high higher and low pattern indicating bullishness in the market while the MACD indicator has also shown a positive crossover suggesting bullish sentiments.
The Anand Rathi analyst sees resistance at Rs 63000-63,450 while support levels at Rs 62,400-61,900.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,500 per 10 gram while those of 1 kg of Silver is Rs 78,500.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX February Gold futures at Rs 62,800 with a stop loss of Rs 62,400 and a price target of Rs 63,300.
– Buy MCX March Silver futures at Rs 77,000 with a stop loss of Rs 76,000 and a price target of Rs 79,000.
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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)