Gold Rate Today: Yellow metal slips by Rs 870/10 grams from lifetime highs. Is it time to book gains?

Gold and silver contracts opened on a positive note on Wednesday taking cues from international peers. While the April gold futures traded at 65,559 per 10 grams on the MCX, gaining Rs 78 or 0.12% over Tuesday’s closing price, May silver futures were trading at Rs 73,924 per kg, higher by Rs 74 or 0.10%. Track prices here

However, they have declined by Rs 879 or 1.3% from their all-time high of Rs 66,356 on fears that the interest rate could remain elevated for longer amid higher-than-expected consumer inflation numbers in the US.

The prices have risen by 4.78% or Rs 2,990 on MCX on a month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. On a year-to-date basis, the uptick is Rs 2,356 or 3.73%. As for silver contracts, the MTD gains stand at 3.71% or Rs 2,646 while the YTD declines at 0.68% or Rs 505, Gupta added.

On Tuesday, MCX Gold April contract closed the session at Rs 65,414, down by Rs 67 or 0.10%.

Gold prices corrected by 0.84% on Tuesday hit chiefly by fears of higher-for-longer US interest rates, after consumer price index inflation read higher than expected for February, Gupta said. In his view, gold could trade between Rs 65,000 -66,000 while silver between Rs 72,500 and Rs 74,500 levels.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 65,500 per 10 grams while that of 1 kg of Silver is Rs 75,000, Gupta said. Click to know moreThe gains in bullion prices could be attributed to the downtick in the dollar index (DXY) which has seen a 0.48% fall in the last five trading sessions. Today around 9:15 am India time, DXY was hovering near the 102.87 mark, down by 0.09 points or 0.09%.On the Daily chart, MCX April Gold futures have developed an ‘Evening Star’ candlestick formation, signalling a potential downturn, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said. She opined that the RSI is indicating overbought conditions, which may lead to a price correction in the near term.

The Anand Rathi Analyst sees key resistance levels at Rs 66,044-Rs 66,356 while support at Rs 65,055-Rs 64,680.

Intraday Trading Strategy by Neha Qureshi

– Sell MCX April Gold futures at Rs 65,400 with a stop loss of Rs 66,000 and a price target of Rs 64,700.

– Sell MCX May Silver futures at Rs 73,800 with a stop loss of Rs 74,800 and a price target of Rs 71,800.

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