Gold Price Today: Yellow metal hits new lifetime high, eyes Rs 60,000 mark

MCX Gold futures hit yet another lifetime at Rs 59,520 per 10 grams in Monday’s intraday trade, defying weak global market trend.

The April Gold futures were trading at Rs 59,561, up Rs 137 or 0.23% at 10:40 am. Meanwhile, May Silver futures were trading flat around this time at Rs 68,493 per kg, though the bias was slightly negative.

MCX Gold futures are on a roll and are expected to make new lifetime highs this week as well, according to Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities. The yellow metal futures hit their lifetime highs on Friday in intraday trade (Rs 59,461) and on the closing basis at Rs 59,420 per 10 grams.

“As expected, last week, we saw a rally in gold and silver. MCX Gold made a new lifetime high of Rs 59,461 levels and it increased by 5.85% and closed at 59,420 levels. In the international market, it increased by 6.49% and closed at $1988 levels. MCX Silver made a 6-week high of 68,720 levels. It increased by 9.22% and closed at 68,649 levels. In the international market, it increased by 10.07% and closed at $22.59 levels,” said Gupta.

MCX gold has beaten all other asset classes in terms of returns. It has gained Rs 4,366 or nearly 8% on a year-to-date (YTD) basis with returns of Rs 3,628 or 6.51% in March alone.

“Bullion prices also benefited from doubts over whether the Federal Reserve had enough headroom to keep raising interest rates, given the growing pressure on the economy. But a rush to safe havens provided the biggest boost to gold, as the collapse of several regional US banks ramped up concerns over contagion in the broader economy, as well as fears of a looming recession,” Gupta said.

“Technically the chart of gold is looking in bullish momentum. Gold may find support at 59,000 ($1960) levels and 58,500 ($1920) levels, while resistance at 59,900 ($2010) and then 60,500 ($2050) levels. Silver may find support at 67,500 ($22.00) levels and then 66,000 ($21.40) levels, while resistance at 69,800 ($23.20) levels and then 71,500 ($24) levels,” the IIFL Securities expert said.Gupta opines that yellow metal futures could test Rs 60,000 to 60,500 levels ($2010 to $2050) levels this week.

“Silver may test 69,800 to 71,000 ($23.30 & $24) levels very soon. We are recommending buying Gold and Silver at the support levels,” Gupta further said.

Intraday Trading Strategy by Anuj Gupta

• Buy MCX April Gold futures at Rs 59,000 with a stop loss of Rs 58,650 and price target of Rs 59,500.

• Buy MCX May Silver futures at Rs 67,500 with a stop loss of Rs 67,000 and price target of Rs 69,000.

“The U.S. Fed is scheduled to meet this week and their policy outcomes in light of the banking crisis and mixed U.S. economic indicators could give more direction to bullion markets,” Manoj Kumar Jain, Prithvifinmart Commodity Research, said.

“At MCX, gold is having support at Rs 58,820-58,500 and resistance at Rs 59,660-60,000 while silver is having support at Rs 67,750-67,200 and resistance at Rs 69,200-70,000. We suggest buying gold on dips around Rs 58,800 and adding more around Rs 58,400 with a stop loss of Rs 57,920 for the target of Rs 59,660-60,000 and also suggest buying silver around Rs 68,000 and adding more on dips around Rs 67,400 with a stop loss of Rs 66,660 for the targets of Rs 69,200-70,000,” he added.

Bullion investors must keep an eye on the movement of rupee against the USD. A stronger rupee could make bullion imports expensive.

“Rupee could remain in a range this morning as FPI continues to sell Indian equities. The market awaits FOMC on 22nd March in which Fed could deliver a 25 bps rate hike,” Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)