Gold prices declined marginally in the last trading session of 2023. Despite a slight dip, gold prices clocked their best year in three, as expectations regarding US interest rate cuts early next year and the war in Ukraine and tensions in the Middle East lifted safe-haven demand.
The February gold futures were trading at Rs 63,306 per 10 grams on the MCX at 10.30 am and were down by Rs 83 or 0.13% from Thursday’s closing price. Meanwhile, the March Silver futures were trading at Rs 74,299 per kg and were lower by Rs 660 or 0.88% around this time.
On Comex, the gold futures were trading at $2,079.2 per troy ounce down $4.2 or 0.2% while silver futures were trading at $24.06 per troy ounce, down by $0.310 or 1.27%.
“The retreat was attributed to a strengthening US dollar and rising Treasury yields, both of which countered the support stemming from expectations of Federal Reserve rate cuts in the early months of the following year,” Saish Sandeep Sawant Dessai, Analyst at Angel One, said.
“We expect gold to trade lower towards 63,100 levels, a break of which could prompt the price to move lower towards 62930 levels,” he said.
The dollar index rebounded from a five-month low, and 10-year bond yields increased from their July lows.
“On the daily chart, gold (December contract) has formed a dark cloud cover candlestick pattern indicating bearishness. Currently, the price is trading above its 21 & 50 Days EMA. The Relative Strength Index (RSI) is forming a negative divergence, indicating a bearish outlook,” said Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.”Looking at potential price levels, there is resistance on the upside at approximately 63820 and 64460 On the downside, support levels are observed around 62,900 and 62,650,” she said.
Anuj Gupta, Head of Commodities & Currency at HDFC Securities, said, “We have noticed that the dollar index is trading at 5-month low levels which gives support to the Bullion as a safe haven demand.”
“For the trading, gold may trade between $2060 to $2080 levels with a positive bias and on MCX it may trade between 63000 to 64000 levels. Silver may trade between 74500 to 76000 levels. Overall, the trend is positive. Buy on dips is recommending,” Anuj said.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)