Gold Price Today: Yellow metal at day’s high on dollar retreat; buy April futures, says analyst

Gold and silver futures were trading at day’s high in the second half of Tuesday’s session triggered by slippages in the greenback. The Dollar Index was down 0.29% at 102 against the basket of six major currencies.

Movement in gold price is inversely related to the dollar trajectory.

The MCX April Gold futures were trading at Rs 58,863 per 10 gm around 7:20 am and up by Rs 337 or 0.58% from the Monday closing price. The intraday high stood at Rs 58,920. Meanwhile, the silver futures were up Rs 162 per kg or 0.23% around this time and were trading at Rs 70,088. The intraday high was Rs 70,384.

Commodity and currency expert Anuj Gupta recommends a buying strategy on gold and silver futures over the remaining part of the trading session, said Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities.

Intraday Trading Strategy

Buy April Gold futures at Rs 58,500 with a stop loss of Rs 58,150 and price target of Rs 59,300, Gupta said.

Buy May silver futures at Rs 69,600 with a stop loss of Rs 68,900 with a price target of Rs 70,800.MCX Gold futures have rallied by as much as 6.57% on the year-to-date basis while gaining 5.68% on the month-to-date basis, Gupta said.

As for Silver futures, the gains have been to the tune of 8.68% in March as this precious metal has recovered its January-February underperformance. The YTD gains are 0.86%, the IIFL Securities analyst further said.

On Comex, gold futures were trading at $1,963 per troy ounce and were trading up $9.20 or 0.47% while silver futures were trading at $23.17, up by $0.025 or 0.11%.

Gold has been closely tracking the changing expectations regarding Fed policy, Reuters reported, quoting the economists at Barclays.

“If inflation drops sharply but central banks are reluctant to immediately lower rates in response to it, this could be detrimental” to gold, they wrote.

Higher interest rates tend to discourage investment in non-yielding bullion.

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