Gold Rate Today: Gold gains Rs 39/10 grams on MCX, silver falls Rs 151/kg. What should traders do?
A softer dollar index (DXY) lifted the appeal of gold which was trading with a positive bias in the early trade on Monday. Bullion fell to a two-month low last week after higher-than-expected consumer price data dented hopes of an early rate cut by the US Federal Reserve.
Bullion traded mix in the opening trade today, with MCX April gold futures trading at Rs 61,661 per 10 grams, up by Rs 39 or 0.06% while March Silver contracts were at Rs 71,272 per kg, lower by Rs 151 or 0.21%. Track prices here
The cues from international markets were positive around this time. On the Comex, gold futures were trading at $2,033.50 per troy ounce, up by $9.40 or 0.46%, while Silver futures were hovering at $23.185 per troy ounce, lower by $0.290 or 1.240%.
The recent lacklustre trade has been on the back of a stronger dollar index (DXY) which has appreciated by 0.87% over the past one month. Today, it was hovering around the 104.23 mark, down by 0.07 points or 0.07%.
On Friday, MCX Gold April contract closed at Rs 61,832, down by Rs 46 or 0.07% while the March Silver futures settled at Rs 72,085, down by Rs 27 or 0.04%.
“Gold and silver continued their upward trajectory following the release of US consumer sentiment data indicating a slight improvement. This bolstered both gold and silver prices, countering the impact of hotter-than-expected US PPI and core PPI data, which underscored a resurgence in inflation and diminished prospects for early rate cuts. Despite a mixed bag of US economic data released the previous week, which tempered gains in the dollar index, gold and silver prices found support at lower levels,” Rahul Kalantri, Vice President Commodities, Mehta Equities said.According to Mehta, gold is expected to find support in the range of $1,998-1,985, with resistance at $2,026-2,038, while silver’s support lies between $23.25-23.08, with resistance at $23.60-23.74.Gold’s year-to-date (YTD) losses are at Rs 1,325 per 10 grams or 2.10% while month-to-date (MTD) declines stand at Rs 857 or 1.37%, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. As for Silver, the YTD declines stand at Rs 2,318 per kg or 3.11% while MTD declines at Rs 135 or 0.19, he added.
Gupta expects gold to trade between Rs 61,500 and Rs 62,000 while Silver contracts to trade between Rs 71,500 and Rs 73,000 levels.
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 74,000. Click to know more
Intraday Trading Strategy by Anuj Gupta
– Buy MCX April gold futures at Rs 61,925 with a stop loss of Rs 61,750 and a price target of Rs 62,250.
– Sell MCX March silver futures at Rs 71,450 with a stop loss of Rs 70,800 and a price target of Rs 72,080.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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