Gold prices slipped on Tuesday in early trade amid gains in the dollar index and higher bond yields even as the Street awaits comments from a host of US Federal Reserve’s speakers later this week to get more clarity on the Central Bank’s rate trajectory.
Taking cues from the international market, MCX February gold futures were trading with minor gains. They were hovering around Rs 62,474 per 10 grams, down Rs 85 or 0.21% from Monday’s closing price. Meanwhile, the March Silver futures were trading at Rs 72,478 per kg, lower by Rs 149 or 0.21%.
Comex Gold futures were trading at $2,054.60 per troy ounce on Tuesday, up $3 or 0.15% while Silver futures were trading at $23.300, lower by $0.029 or 0.120%.
The dollar index (DXY) was trading slightly lower at 102.90 against a basket of six top currencies, up by 0.50 points or 0.49%. It has appreciated 0.32% over the past five trading sessions.
“Gold prices declined after a European central bank official, Robert Holzmann, expressed caution about expecting rate cuts due to inflation and geopolitical risks. This stance aligns with the Federal Reserve’s approach in the US. The uncertainty in US economic data has added to speculation about the Fed’s monetary policy, affecting gold prices. Gold is currently at $2,052.05 per ounce, with the Bloomberg Dollar Spot Index slightly rising,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
On the daily chart, February MCX Gold contract has given a breakdown from its rising channel, forming lower high and lower low patterns which indicates bearishness with MACD giving a negative crossover and corroborating the same, Qureshi said. Moreover the 21-day EMA crossing below the 50 DEMA suggests is adding to the bearish outlook, she added. The Anand Rathi analyst sees the resistance at Rs 62,700 – Rs 63,000 while support is around Rs 62,300 – Rs 61,900.
Gold has narrowed its losses from 2.24% or Rs 1,415 to 1.02% or Rs 644 per 10 grams in 2024, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. Meanwhile, Silver futures have also trimmed this year’s losses to 2.42% or Rs 1,803 from 4.13% or Rs 3,076 per kg in the last four sessions, Gupta of 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.
The price of gold in major physical bullion markets like Delhi, Ahmedabad, and other cities is Rs 63,500 per 10 grams while those of 1 kg of Silver is Rs 74,500.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,600 with a stop loss of Rs 63,000 and a price target of Rs 62,000.
– Sell MCX March Silver futures at Rs 72,700 with a stop loss of Rs 73,700 and a price target of Rs 70,700.
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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)