Gold Rate Today: Yellow metal hits yet another life high of Rs 65,298; monthly gains extend to over Rs 2,700/10 grams
Gold hit yet another lifetime high of Rs 65,298 per 10 grams on the MCX on Thursday getting dearer by more than Rs 2,700 in the first week of March. The yellow metal has been surging in domestic and international markets on hopes of an interest rate cut by the US Federal Reserve in June. Track here
Chair Jerome Powell’s words that the Central Bank could consider cutting rates in the coming months cheered the markets as yellow metal hit a new peak of $2,152 in international markets on Wednesday.
The prices have risen by 5.24% on Comex while gaining Rs 2,700 or 4.34% per 10 grams on the MCX, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. Street is riding high on hopes of interest rate cuts by the US Fed, he said.
Meanwhile, the MCX gold contract price is up by 3.12% or Rs 1,975 on a year-to-date basis as of Wednesday.
However, MCX Silver started on a slippery note on Thursday after ending in the green on Wednesday. It was trading at Rs 74,015 per kg around 9:30 am, down by Rs 123 or 0.17%. Silver futures have gained nearly Rs 2,859 or 4.01% in value terms in March while declining by 0.39% or Rs 292 on the YTD basis, the commodity and currency analyst said.
On Wednesday, MCX Gold April contract closed at Rs 65,199, up by Rs 21 or 0.03% while the May Silver futures settled at Rs 74,200, higher by Rs 62 or 0.08%. Silver had hit the day’s high of Rs 74,240 per kg which is still far from its all-time high of Rs 79,566. Gold has gained on softening of the dollar index (DXY) which has once again slipped below the 104 mark. Today, it was trading flat at 103.80 against a basket of six top currencies. Its value has depreciated by 0.17% in the last five trading sessions.On the Comex, gold futures were trading flat at $2,158.50 per troy ounce on Thursday in the morning trade, up by $0.30 or 0.1% while Silver futures were hovering at $24.390 per troy ounce, lower by $0.103 or 0.420%.
“Gold’s recent surge to a new record has taken the market by surprise, driven by weak US economic data and banking concerns, leading to a 5% increase in prices over four trading days. Despite no major changes in expectations for Federal Reserve rate cuts, geopolitical tensions and robust demand, especially from China, have provided a supportive backdrop for gold. Central bank purchases and consumer demand have bolstered gold, even as it traditionally moves inversely to bond yields,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said
The key factor to watch is the market’s anticipation of when the Fed will reduce borrowing costs, with a current 65% chance of a rate cut in June, Qureshi said.
On the daily chart, MCX April Gold contract is exhibiting a pattern of higher highs and higher lows which suggests a bullish trend, Qureshi said, though she warns of RSI, which is currently in the overbought territory, hinting at a potential pullback in prices.
The Anand Rathi Analyst sees resistance at Rs 65,300-65,500 while support at Rs 64,500-64,300.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 66,000 per 10 grams while that of 1 kg of Silver is Rs 75,500, Gupta said. Click to know more
Intraday Trading Strategy by Neha Qureshi
– Buy MCX April Gold futures at Rs 65,100 with a stop loss of Rs 64,800 and a price target of Rs 65,500.
– Buy MCX May Silver futures at Rs 74,100 with a stop loss of Rs 73,100 and a price target of Rs 76,100.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)