Gold Rate Today: As yellow metal trades at historic highs, is it time to book some profits?

Gold remained in a strong uptrend on Tuesday after hitting lifetime highs on MCX and in the international markets on Monday. Street’s expectations of interest rate cut next year is firing-up the prices. This has dented Dollar’s prospects and aiding the yellow metal prices.

MCX February gold futures were trading at Rs 62635 at the opening time, up Rs 266 or 0.43% from Monday’s closing price. Meanwhile, the March Silver futures were trading at Rs 76,220 per kg, higher by Rs 52 or 0.07%.

On Comex, Gold futures were trading at $2,054.40 per troy ounce, up by $12.20 or 0.60% while Silver futures were trading at $24.920, higher by $0.013 or 0.050%. The DXY has corrected by 1.8% over the last one month.

The dollar index (DXY) was down $0.08 or 0.08% against a basket of six top currencies and hovering around 103.63.-

On Monday, the February contract hit a new lifetime high of Rs 64,063 and ended the session flat at Rs 62395, up by Rs 26 or 0.04%. As for Silver futures, the March contract settled at Rs 76,142, down by Rs 26 or 0.03%.

“Weakness in dollar and geopolitical tension are the major reasons for the bullish trend in gold and silver,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said. He sees Comex gold trading between $2,025 and $2,045 while MCX gold futures trading at Rs 62,000 – Rs 63,000 levels. As for Silver futures, the day’s trading range is estimated at Rs 75,500 – Rs 77,000, Gupta said.
On the daily chart, December Gold contract has manifested an Outside Bar candlestick pattern, suggestive of an impending reversal or shift in the trend, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, adding that the Relative Strength Index (RSI) is exhibiting discernible signs of reversal from the overbought zone, indicative of bearish sentiments gaining prominence.The Anand Rathi analyst sees resistance at Rs 63,400 – Rs 64,100 while support at Rs 61,800 – Rs 60,300.

Gold futures on the MCX have lost by 0.43% or Rs 271 per 10 gram on the month-to-date basis, Gupta informed. They were up by 13.36% or Rs 7,352 on the year-to-date basis as on Monday, December 4 on the closing price basis. Meanwhile, Silver futures have declined nearly Rs 755 or 1,347% in value terms in December while gaining by 9.73% or Rs 6,755 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 63,000 per 10 gram while those of 1 kg of Silver is Rs 78,000.

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Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs Rs 62,300 with a stop loss of Rs 62,800 and a price target of Rs 61,700.

– Sell MCX March Silver futures at Rs 76,000 with a stop loss of Rs 77,000 and a price target of Rs 74,000.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)