Gold witnessed a minor uptick in the early trade on Friday amid slippage in the dollar index (DXY). The dollar index is currently at a four-month low, aiding the cause of the yellow metal. It is set to close with yet another weekly gain. Experts see more upside in the yellow metal and suggest a buying in gold and silver contracts.
Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 62,748 per 10 grams in the opening trade, up Rs 245 or 0.39%. Meanwhile, the March Silver futures were trading at Rs 75,683 per kg, higher by Rs 257 or 34%. Track prices here
On Comex, gold futures were trading at $2,061.70 per troy ounce, up $10.40 or 0.51% while silver futures were trading at $24.745, higher by $0.160 or 0.650%.
The dollar index (DXY) was flat at 102.31 against a basket of six top currencies. It has extended its losses to 0.64% in the past five sessions.
On Thursday, the MCX February gold contract closed at Rs 62,525, up by Rs 22 or 0.04% while the March silver futures settled at Rs 75,450, up by Rs 24 or 0.03%.
“Gold’s rangebound movement is on account of Christmas and the year now closing but the festive demand is supportive for bullion. However, appreciation in Rupee against the dollar curbs the appreciation in bullion prices,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
Comex gold may trade between $1,940 and $1,960 today while the MCX gold contract could trade between Rs 62,300 and Rs 63,000. As for Silver, this analyst sees the MCX March contract trading between Rs 75,000 and 77,000 levels. With the overall trend remaining positive, he suggests a buy-on-dips strategy.
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, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Moreover, the Relative Strength Index (RSI) is forming a positive divergence, indicating a bullish outlook, she said, adding that a breakout above Rs 62,600 can lead to further bullishness in the market.
The Anand Rathi Analyst sees resistance at Rs 67,600 – Rs 63,000 and support around Rs 62,050 – 61,700 for gold.
Gold futures on the MCX have lost 0.22% or Rs 137 per 10 grams on a month-to-date basis, Gupta said. They are up by 13.61% or Rs 7,486 on the year-to-date basis as of Thursday, December 21 on the closing price basis. Meanwhile, Silver futures have declined nearly Rs 2,089 or 2.69% in value terms in December while gaining by 8.66% or Rs 6,013 on a YTD basis, the commodity and currency analyst said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,500 per 10 grams while that of 1 kg of silver is Rs 76,800. Click to know more
Intraday trading strategy for gold & silver by Neha Qureshi
– Buy MCX February Gold futures at Rs 62,500 with a stop loss of Rs 62,200 and a price target of Rs 63,000.
– Buy MCX March Silver futures at Rs 75,400 with a stop loss of Rs 74,400 and a price target of Rs 77,400.
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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)