Gold Rate Today: Yellow metal at six-month highs; 2023 gains at Rs 6,600 on MCX. How far will the rally go?
Gold continued its gains on Tuesday scaling six-month highs as a weaker dollar raised the appeal of the yellow metal. The dollar index is currently trading at three month lows.
Taking cues from the international prices, MCX December gold futures opened in the green and were trading at Rs 61,649 per 10 gram, up by Rs 109 or 0.18% from the Monday closing price. Meanwhile, the December silver futures were trading at Rs 74,795 per kg, lower by Rs 11 or 0.01%.
On Comex, gold futures were trading at $2,016.10 per troy ounce on Tuesday, up by $3.70 or 0.18% while Silver futures were trading at $24.655, higher by 0.026 or 0.11%.
The dollar index was trading at 103.12 against a basket of top six currencies, down by $0.08 or 0.08% though the bias was negative.
The December Gold futures ended at Rs 61,546 on holiday shortened Monday, up by Rs 6 or 0.01% while the December silver futures settled at Rs 74,792, lower by Rs 14 or 0.02%. MCX was shut for trading in the first session on account of Guru Nanak Jayanti.
“Gold is holding near its highest level since May, driven by falling treasury yields. Traders are betting on the Fed cutting interest rates next year, pushing bond yields down. This trend is positive for gold. Hedge funds are increasingly optimistic about gold,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Gold futures on the MCX have gained by 1.61% or Rs 669 per 10 gram on the month-to-date basis, Analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. They were up by 12% or Rs 6,602 on the year-to-date basis as on Monday, November 27 on the closing price basis. Meanwhile, Silver futures have gained nearly Rs 3,129 or 4.37% in value terms in November while gaining by 7.74% or Rs 5,371 on the YTD basis, the commodity and currency analyst said.
Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking sees strong momentum in bullion on the technical charts, citing a favourable RSI.
His advice to the traders is to make fresh buy positions in gold and silver futures near a support of Rs 61,400-61,100 with a stop loss at the support levels. He recommended profit booking at resistance of Rs 61,800-62,000.
As for silver December futures the support is placed at Rs 74,400-73,600 and resistance at Rs 75,500-76,000.
On the daily chart, Gold December contract has formed a bullish engulfing candlestick pattern followed by doji indicating bullishness in the market and also trading above its 50-day and 100-day Exponential Moving Average (EMA), Qureshi of Anand Rathi said. A breakout above 61,700 could trigger more bullish sentiments, she further said.
The Anand Rathi analyst sees resistance at Rs 61,750-61,900 while support levels at Rs 61,300-60,900.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62500 per 10 gram while those of 1 kg of Silver is Rs 76,000.
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Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 61,700 with a stop loss of Rs 61,300 and a price target of Rs 62,200.
– Sell MCX December Silver futures at Rs 74,500 with a stop loss of Rs 75,500 and a price target of Rs 72,500.
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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)