Gold December futures contracts at MCX opened on Tuesday at Rs 78,389 per 10 gram, which is up by 0.45% or Rs 329 while silver December futures contracts were trading at Rs 98,299/kg, up by nearly 0.9% or Rs 851.
In the last one week, the prices of Gold have increased by over Rs 2,000/ 10 gram while those of silver have gained nearly Rs 6,700/kg in the same time period.
On Monday, gold and silver settled on a positive note in the domestic markers and on a slightly positive note in the international markets. Gold December futures contract settled at Rs78,039 per 10 grams with a gain of 0.37% and silver December futures contract settled at Rs97,448 per kilogram with a gain of 2.14%.
Gold prices hit record highs and silver prices hit fresh 12-year highs on Monday amid safe-haven demand and de-dollarization but slipped from their record highs due to gains in the dollar. Silver is also catching the rally of gold as precious metal. Interest rate cuts by China are also supporting silver prices. However, strength in the dollar and U.S. bond yields could limit gains.
Gold rallied after Russian President Putin proposed a new payment system for BRICS nations in the BRICS summit to counter U.S. dollar dominance of global foreign exchange reserves. Presently, around 58% of global central banks foreign reserves are in dollar denominated assets. Gold could benefit from de-dollarization from the BRICS and other nations.
The US dollar is gaining strength, along with rising government bond yields, driven by uncertainty around the upcoming US elections. Polls show a tight race between Donald Trump and Kamala Harris, with Trump leading on key issues like the economy and immigration.“A Trump victory could disrupt the Federal Reserve’s current monetary policy,” believes Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Today, the US Dollar Index, DXY, was hovering near the 103.97 mark, falling 0.04 or 0.034.
“From a technical standpoint, Gold remains bullish, trading above key moving averages. The 20 SMA is around $2,660, while the RSI sits at 72, signaling easing buying pressure. In the 4-hour chart, indicators have flattened after pulling back from recent highs but remain above their midlines, suggesting buyers are pausing without abandoning the bullish trend. The 20 SMA continues to rise, supporting the overall uptrend,” Qureshi added.
Intraday Trading Strategy by Neha Qureshi:
- Buy MCX December Gold futures at Rs 78,000 with a stop loss of Rs 77,800 and a price target of Rs 78,400.
- Buy MCX December Silver futures at Rs 97,000 with a stop loss of Rs 96,000 and a price target of Rs 99,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)