Gold Rate Today: Yellow metal gains climb to Rs 3,700 in October. Should you buy, hold or book profit?
Gold traded with a positive bias on Monday ahead of the US Federal Reserve’s monetary policy meeting outcomes scheduled on Wednesday, November 1. The shine in yellow metal continues despite a resilient dollar index (DXY) as the Israel-Hamas conflict brightens its haven appeal.
MCX December gold futures were trading flat at Rs 61,350 per 10 gram, up by Rs 194 or 0.32% from the Friday closing price.
They are at five month high levels. Meanwhile, the December Silver futures were trading at Rs 72,332 per kg, higher by Rs 615 or 0.86%.
On Comex, Gold futures were trading at $2,011.10 per troy ounce on Monday, up by $12.60 or 0.63% while Silver futures were at $23.275, higher by $0.388 or 1.70%.
The dollar index was trading flat at 106.59 against a basket of top six currencies, though the bias was positive.
Gold prices have been on a roll over the past three weeks as investors flocked towards the yellow metal owing to its safe-haven appeal in the aftermath of due to geo-political tension that has erupted due to Israel-Hamas conflict, Deveya Gaglani, Research Analyst-Commodities at Axis Securities said. The prices have surged nearly 8% from its lows despite a resilient dollar index, the expert said.
He sees MCX gold futures to rally up to Rs 62,000 in the near term, if it sustains a level of Rs 61,000.The MCX gold futures have gained by 6.48% or Rs 3,731 per 10 gram on the month-to-date basis while their gains in 2023 stand at 11.48% or Rs 6,314, according to Anuj Gupta, Head Commodity & Currency, HDFC Securities.
As for silver futures, the uptick in October is around 3.58% or Rs 2,500 while the year-to-date gains stand at Rs 4.25% or 2,947 per kg.
On gold’s resurgence, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said that Gold has surpassed $2,000 per ounce and it went up by 1.1% on Friday because of Israel’s actions in Gaza. The ongoing conflict in the Middle East is having a bigger impact on gold prices than triggers like anticipation of Fed outcome and government bond yields in her view.
MCX December Gold contract is establishing a pattern of higher highs and higher lows on the daily chart, she said, adding that it has broken above its 100-day and 200-day Exponential Moving Average (EMA). Moreover, the Relative Strength Index (RSI) is also forming a pattern of higher highs and higher lows, indicating a bullish sentiment.
She sees resistance at Rs 61,250 and 61,500 while support at Rs 60,000-59,600.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,500 per 10 gram while those of 1 kg of Silver is Rs 74,500.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 61,100,with a stop loss of Rs 60,921 and a price target of Rs 61,540
– Buy MCX December Silver futures at Rs 71,450 with a stop loss of Rs 70,600 and a price target of Rs 72,700.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 61,150 with a stop loss of Rs 60,800 and a price target of Rs 61,700.
– Buy MCX December Silver futures at Rs 72,000 with a stop loss of Rs 71,000 and a price target of Rs 74,000
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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)