Gold continued to trade in a tight range on Wednesday ahead of the Federal Open Market Committee (FOMC) meeting outcome scheduled later today. The bias was negative amid gains in the dollar index (DXY).
Taking cues from the price movement in the international markets, April MCX gold futures were trading at Rs 62,425 per 10 grams around 9:10 am and were down Rs 22 or 0.04% while the March Silver futures were trading lower by Rs 48 or 0.07% at 72,294 per kg.
On the Comex, the gold contracts were trading at $2,051.80 per troy ounce, up by $0.90 or 0.04% while Silver was hovering near $23.185, higher by $0.040 or 0.170%.
The dollar index (DXY) was trading slightly lower at 103.61 against a basket of six top currencies, up by 0.22 points or 0.21%. It has appreciated by 0.36% over the past five trading sessions.
On Tuesday, MCX Gold February contract closed flat at Rs 62,460, up by Rs 13 or 0.02% while the March Silver futures settled at Rs 72,350, lower by just Rs 8 or 0.01%.”Gold prices remained stable as investors awaited the outcome of the Federal Reserve‘s meeting, which could influence future interest rate decisions. Recent expectations for a cut in interest rates have decreased, impacting gold, which does not earn interest. However, a recent report showing a slowdown in inflation has supported gold prices,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies saidOn the daily chart, MCX April Gold futures have given a breakdown from their rising channel forming lower high and lower low patterns while the MACD has also given a negative crossover indicating bearish sentiments, Qureshi said. Moreover, 21-day EMA crossing below the 50-day EMA and RSI forming lower high and lower low add to the bearish outlook, she added.
The Anand Rathi analyst sees resistance at Rs 62,700 – Rs 63,100 while support at Rs 61,530 – Rs 61,000.
Gold has narrowed its losses to 0.90% or Rs 569 per 10 gram in 2024, Gupta informed. Meanwhile, Silver futures have also trimmed this year’s losses to 2.79% or Rs 2080 from 4.13% or Rs 3,076 per kg, 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.
The 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 73,500.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX April gold futures at Rs 62,270-62,300 with a stop loss of Rs 62,080 and a price target of Rs 62,525-62,650.
– Sell MCX March silver futures at Rs 72,450-72,500 with a stop loss of Rs 72900 and a price target of Rs 72,450-72,500.
(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)
(You can now subscribe to our ETMarkets WhatsApp channel)