Gold Rate Today: Yellow metal opens with gains amid weak dollar. Is it time to book profits?
Moderating inflation and the likelihood of no further rate hikes by the US Federal Reserve is boosting the appeal of gold which has shot up to three week highs. On Thursday, the yellow metal traded with a positive bias, aided by a weak dollar.
Taking cues from the international prices, MCX December gold futures opened in the green and were trading at Rs 61,100 per 10 gram, up by Rs 76 or 0.12% from the Wednesdayclosing price. Meanwhile, the December Silver futures were trading at Rs 73,008 per kg, higher by Rs 182 or 0.25%.
On Comex, gold futures were trading at $1,994.70 per troy ounce on Thursday, up by $1.90 or 0.10% while Silver futures were trading at $23.735, higher by 0.047 or 0.20%.
The dollar index was trading at 103.75 against a basket of top six currencies, down by $0.18 or 0.17% though the bias was negative. It is at an 11-week low.
The December Gold futures ended at Rs 61,018 on Wednesday, down 207 or 0.34% while the December Silver futures settled at Rs 72,781, lower by Rs 523 or 0.71%.
Analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities sees comex gold trading between $1,985 and $2,010 levels while at Rs 60,800-61,500 on the MCX. As for silver futures, the December contract is expected to trade between Rs 72,500 and 73,500.
Gold futures on the MCX have gained by 0.14% or Rs 84 per 10 gram on the month-to-date basis, Gupta informed. They were up by 10.92% or Rs 6,007 on the year-to-date basis as on Wednesday, November 22 on the closing price basis. Meanwhile, silver futures have gained nearly Rs 1,157 or 1.61% in value terms in November while gaining by 4.92% or Rs 3,413 on the YTD basis, the commodity and currency analyst said.
Gold slipped on Wednesday as US bond yields rose on increased consumer inflation expectations, with investors monitoring data for Fed signals, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
The metal’s repeated challenge to breach $2,000 suggests a potential strong finish to the year, but a firmer conviction on Fed rate cuts is needed for sustained demand, she opined
On the daily charts, Gold December contract recently reversed near the resistance at Rs 61,400 and if it falls below this point, the trend could become sideways to downward, Qureshi said. The Anand Rathi analyst sees resistance at Rs 61,250-61,500 while support levels at Rs 60,980-60,700.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,800 per 10 gram while those of 1 kg of Silver is Rs 75,000.
Qureshi and Gupta took a diverse trading strategy for today.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 61,250 with a stop loss of Rs 61,400 and price target of Rs 60,980.
– Sell MCX September Silver futures at Rs 73,200 with a stop loss of Rs 74,000 and price target of Rs 72,180.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX December Gold futures at Rs 61,250 with a stop loss of Rs 61,400 and a price target of Rs 60,900.
– Sell MCX December Silver futures at Rs 73,000 with a stop loss of Rs 74,000 and a price target of Rs 71,000.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)