Gold traded in the green on Friday in the opening trade amid slippages in the dollar index (DXY) and on tensions in the Middle East that raised its haven appeal. Despite the uptick, the yellow metal is set to close with the second weekly decline.
Taking cues from the international market, MCX February gold futures were trading in the green. They were hovering around Rs 62,209 per 10 grams, up by Rs 421 or 0.68% from Thursday’s closing price. Meanwhile, the March Silver futures were trading at Rs 71,897 per kg, higher by Rs 543 or 0.76%.
Comex Gold futures were trading at $2,038.10 per troy ounce on Friday, up by $18.90 or 0.94% while Silver futures were trading at $23.020, higher by $0.315 or 1.390%.
The dollar index (DXY) was trading slightly lower at 102.22 against a basket of six top currencies, down by 0.07 points or 0.07%. It has declined 0.18% over the past five trading sessions.
“Gold went up 0.3% to $2,034.14 due to airstrikes in Yemen, increasing demand for safe assets. However, it’s down 0.6% for the week due to higher-than-expected US inflation, impacting the Federal Reserve‘s plans,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
On the daily chart, MCX February Gold futures have given a breakdown of its rising channel, forming a lower high and lower low pattern which indicates bearishness with MACD also forming a negative crossover adding to the subdued sentiments, Qureshi said.The Anand Rathi Analyst sees resistance at Rs 62,530 – Rs 63,080 while support at Rs 61,530 &- Rs 61,000.
Gold is down by 2.24% or by Rs 1,415 from the 2023 closing price while Silver futures have corrected by 4.13% or Rs 3,076 per kg in the last two sessions, Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
After ending 2023 with gains of 15.22% or by Rs 8,372 per 10 gram, MCX gold futures have started this year on a weak note and have carried the sluggishness into the second week as well, Gupta said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,300 per 10 gram while those of 1 kg of Silver is Rs 72,500.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,000 with a stop loss of Rs 62,500 and a price target of Rs 61,500.
– Sell MCX March Silver futures at Rs 72,000 with a stop loss of Rs 73,000 and a price target of Rs 70,000.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX February gold futures at Rs 62,050 with a stop loss of Rs 61,800 and a price target of Rs 62,380.
– Sell MCX March silver futures at Rs 72,050 with a stop loss of Rs 72,560 and a price target of Rs 71,200.
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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)