Gold Rate Today: Yellow metal slips on Fed Chair’s hawkish commentary. What should traders do in Dhanteras trade?
Chair Jerome Powell’s statement that the US Federal Reserve will not hesitate to raise interest rates further, if necessary, to achieve its 2% inflation target, took some sheen out of the yellow metal on Friday as bullion traded in the red in the early trade.
At 9:30 am, MCX December gold futures were trading at Rs 60,218 per 10 gram, down by Rs 64 or 0.11% from the Thursday closing price. Meanwhile, the December Silver futures were trading at Rs 71,120 per kg, lower by Rs 93 or 0.13%.
On Comex, gold futures were trading at $1,951.30 per troy ounce on Friday, down by $6.50 or 0.33% while silver futures were trading at $22.545, lower by $0.183 or 0.810%.
The dollar index was trading flat at 105.89 against a basket of top six currencies, down by 0.02 points or 0.02%.
The December gold futures ended at Rs 60,327 on the MCX on Thursday, up by Rs 318 or 0.53% while the December Silver futures settled at Rs 71,390, higher by Rs 177 or 0.25%.
“Spot gold was able to find support at the crucial level of $1945. It extended its recovery to $1966 ahead of the Federal Reserve Chair Powell’s remarks in a panel discussion on ‘ monetary policy challenges in a global economy’, which was organised by the IMF. Powell’s remarks were hawkish as he said that they were not confident that monetary policy has reached a stance sufficiently restrictive to bring down the inflation to the desired 2% goal. He added that the Federal Reserve will not hesitate to hike rates further if appropriate. He warned against inflation headfakes,” Praveen Singh–Associate Vice President, Fundamental Currencies and Commodities, Sharekhan said.
He sees support in Comex gold futures at $1,945-$1,920 while resistance at $1,970-$1,995.Festival demand in India may support the gold and silver prices, Anuj Gupta, Head Commodity & Currency, HDFC Securities said as he sees the correction as a buying opportunity in gold and silver as India celebrates Dhanteras today..
He sees gold futures trading between $1,950 and $1,970 on the Comex while between Rs 59,800 and Rs 60,300 levels on the MCX. As for silver futures the trading range is between Rs 70,000 and Rs 73,000, this analyst said.
Gold futures on the MCX have declined by 1.08% or Rs 658 per 10 gram on the month-to-date basis, Gupta said. They were up by 9.57% or Rs 5,265 on the year-to-date basis as on Thursday, November 9on the closing price basis.
Meanwhile, silver futures have lost nearly Rs 180 or 0.26% in value terms in November while gaining by 2.98% or Rs 2,077 on the YTD basis, the commodity and currency analyst said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,200 per 10 gram while those of 1 kg of Silver is Rs 73,500.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 60,025 with a stop loss of Rs 59,740 and price target of Rs 60,550.
– Buy MCX September Silver futures at Rs 70800 with a stop loss of Rs 70,125 and price target of Rs 72,100.
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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)