Gold Rate Today: Yellow metal shines in opening trade. Should you buy or book profits?
Gold prices were steady on Thursday ahead of the inflation numbers that are due for release later today. The yellow metal has traded in a tight range this week and it was trading with a minor uptick in the early trade amid a slip in the dollar index (DXY).
The DXY has fallen by nearly 0.11% over the five trading sessions in anticipation of a rate cut. Today it was hovering near the 103.85 mark against a basket of six major currencies and was down by 0.12 points or 0.12%.
Taking cues from the international prices, MCX April gold futures were trading at Rs 62,270 per 10 grams, up by Rs 21 or 0.03% while the March Silver contracts were trading at Rs 70,880 per kg, higher by Rs 110 or 0.16%.
On the Comex, gold futures were trading at $2,044.50 per troy ounce, up by $1.80 or 0.09%, while Silver futures were hovering at $22.720 per troy ounce, higher by $0.084 or 0.370%.
On Wednesday, the MCX Gold April contract closed at Rs 62,225, down by Rs 24 or 0.04% while the March Silver futures settled at Rs 70,785, higher by Rs 15 or 0.02%.Gold may continue to range trade ahead of US PCE deflator data to be released Thursday, said analyst Praveen Singh, Assistant Vice President, Fundamental Currencies and Commodities at Sharekhan. He sees support for Comex gold at $2002-$2006 while resistance at $2033-$2050.”Gold’s price has remained steady as investors await the upcoming US inflation data. This week, gold has been trading within a tight range and hasn’t changed much since the end of last week. The focus is on the core personal consumption expenditures index, a key inflation measure,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
Federal Reserve officials have been suggesting that a shift towards reducing interest rates is not expected until at least June, even as traders analyse the US economic data and Fed statements to predict when interest rate cuts might happen.
Lower interest rates usually benefit gold, which doesn’t earn interest.
On the daily timeframe, MCX April Gold futures are exhibiting a bullish pattern known as ‘three white soldiers’ followed by higher high higher low pattern signaling potential upward momentum, Qureshi said as she estimated a breakout above the 62,500 mark to further strengthen the bullish sentiment. The Anand Rathi Analyst sees key resistance at Rs 62,500-62,900 while support at Rs 61,900-61,450.
Gold finds support at $2,018-2,005 and faces resistance at $2,044-2,058 while silver’s support lies at $22.32-22.20 with resistance at $22.65-22.80, Rahul Kalantri, Vice President Commodities, Mehta Equities said.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,00 per 10 grams while that of 1 kg of Silver is Rs 72,000.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX April Gold futures at Rs 62,300 with a stop loss of Rs 62,000 and a price target of Rs 62,700.
– Buy MCX May Silver futures at Rs 70,800 with a stop loss of Rs 69,800 and a price target of Rs 72,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)