Gold prices struggled for momentum in the early trade on Monday as Street awaits for US inflation data due later this week for more clarity on the Federal Reserve’s interest rate path after a dovish pivot last week. The lackluster trade was despite the dollar index trading in red.
Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 62,015 per 10 grams in the opening trade, down by Rs 177 or 177% from Friday’s closing price. Meanwhile, the March Silver futures were trading at Rs 74,559 per kg, higher by Rs 34 or 05%. Click to know more
On Comex, Gold futures were trading at $2,036 per troy ounce, up $0.30 or 0.01% while Silver futures were trading at $24.220, higher by $0.066 or 0.270%.
The dollar index (DXY) was down $0.08 or 0.08% against a basket of six top currencies and hovering around 102.47. The DXY has fallen nearly 1.56% in the past five sessions
“Gold and silver prices increased sharply on the MCX on Thursday as dollar index trades at 4-month low levels following Federal Reserve’s decision to keep interest rates steady and signalling deeper cuts for next year as inflation is expected to cool faster than initially anticipated,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said, hinting that the commentary led to a fall in the dollar index, aiding the yellow metal.
“Gold prices stabilised after falling on comments from Federal Reserve officials opposing early interest rate cuts. The metal closed 0.8% lower as New York Fed President John Williams deemed it premature to consider reducing borrowing costs. Atlanta Fed President Raphael Bostic, however, anticipates rate cuts in Q3. European Central Bank’s Madis Muller cautioned against expecting lower rates in H1 2023, echoed by ECB President Christine Lagarde,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Gold currently sits around $2,019.67 per ounce, with the Bloomberg Dollar Spot Index holding steady, she said. On the daily chart, the MCX Gold December contract is forming a higher high and higher low pattern indicating bullishness with the price currently trading above its 21 & 50 Days EMA, Qureshi said. Moreover, the Relative Strength Index (RSI) is forming a positive divergence, indicating a bullish outlook, she added.
The Anand Rathi Analyst sees resistance at Rs 62,600 – Rs 63,000 and support around Rs 61,540 – 61,000.
Gold futures on the MCX have lost 0.72% or Rs 448 per 10 grams on a month-to-date basis, Gupta said. They were up by 13.04% or Rs 7,175 on the year-to-date basis as on Friday, December 15 on the closing price basis. Meanwhile, Silver futures have declined nearly Rs 2,990 or 3.86% in value terms in December while gaining by 7.36% or Rs 5,112 on the YTD basis, the commodity and currency analyst said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad, and other cities is Rs 63,000 per 10 grams while those of 1 kg of Silver is Rs 76,500.
Silver
Intraday Trading Strategy by Neha Qureshi
– Buy MCX February Gold futures at Rs 62,100 with a stop loss of Rs 61,600 and a price target of Rs 62,700.
– Buy MCX March Silver futures at Rs 74,300 with a stop loss of Rs 73,300 and a price target of Rs 76,300.
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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)