Gold Rate Today: Dollar index hits 10-week low, aids yellow metal appeal. Should you buy?
Gold extended gains on Wednesday buoyed by a weaker dollar index (DXY) which slipped below the 105 mark after US inflation data showed a slowing trend bolstering views that the US Federal Reserve is likely done with its rate-hike campaign.
The December gold futures were trading at Rs 60,195 per 10 gram, down by Rs 130 or 0.22% from the Tuesday closing price. Meanwhile, the December Silver futures were trading at Rs 71,788 per kg, higher by Rs 195 or 0.27%.
On Comex, gold futures were trading at $1,969.50 per troy ounce on Wednesday, up by $3 or 0.15% while Silver futures were trading at $23.205, higher by $0.073 or 0.320%.
The dollar index was trading flat at 104.10 against a basket of top six currencies, up by 0.04 points or 0.04%.
“Dollar Index is trading at 10 week’s low levels after data for the US consumer prices showed signs that underlying inflation is slowing in October and increasing the odds that the Federal Reserve is done with hiking the interest rates,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
Gupta sees Comex gold trading between $1,960 and $1,975 for the day while between Rs 60,000 and 60,500 on the MCX. As for silver futures, the futures contracts were trading between Rs 71,000 and Rs 73,000.
On the daily technical chart, December Gold contract has shown a pullback from its peak and now has rebounded strongly from its 50 days EMA indicating bullish sentiments as it currently trades above its 100-day and 200-day Exponential Moving Average (EMA), Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. She sees resistance at Rs 60,600-61,200 while support at Rs 60,000-59,800.
Gold futures on the MCX have declined by 1.22% or Rs 745 per 10 gram on the month-to-date basis, Gupta said. They were up by 9.41% or Rs 5,178 on the year-to-date basis as on Tuesday, November 14 on the closing price basis.
Meanwhile, silver futures have gained nearly Rs 119 or 0.17% in value terms in November while gaining by 3.44% or Rs 2,375 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 60,800 per 10 gram while those of 1 kg of Silver is Rs 73,000.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 60,025 with a stop loss of Rs 59,900 and price target of Rs 60,480.
– Buy MCX September Silver futures at Rs 71,450 with a stop loss of Rs 70,980 and price target of Rs 72,300.
Intraday Trading Strategy
– Buy MCX December Gold futures at Rs 60,200 with a stop loss of Rs 59,900 and a price target of Rs 60,600.
– Buy MCX December Silver futures at Rs 71,700 with a stop loss of Rs 70,700 and a price target of Rs 73,700.
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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)