Gold Price Today: Yellow metal’s March gains at Rs 3,100/10 grams. Should you buy at current rates?

Gold prices traded with a positive bias in the opening trade on Tuesday though the movement remains range bound ahead of the US Federal Reserve’s policy meeting outcome on Wednesday.

The MCX April gold futures were trading at Rs 65,671 per 10 grams, up by Rs 63 or 0.10% while the May Silver contract was trading at Rs 75,590 per kg around 9:10 am, lower by Rs 94 or 0.12%. Track price here

The price of April Gold contract is now down by Rs 685 from its lifetime peak of Rs 66,356. This correction could be attributed to an uptick in the dollar index (DXY) which was hovering around 103.59 today, up by 0.16 or 0.16%. It has appreciated by 0.62% over the previous five sessions.

The prices have risen by 4.97% or Rs 3,112 on MCX on a month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. On the year-to-date basis, the uptick is Rs 2,476 or 3.92%. As for the Silver contract, the MTD gains stand at 6.06% or Rs 4,344 while the YTD gains at 1.57% or Rs 1,171, Gupta added.

Gupta sees MCX gold trading at Rs 65,500- Rs 66500 levels while silver at Rs 74,500-Rs 77000.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 65,800 per 10 grams while that of 1 kg of Silver is Rs 76,500, Gupta said. Click to know more On the daily chart, MCX April Gold futures are exhibiting a pattern of higher highs and higher lows, which suggests a bullish trend though the Relative Strength Index (RSI) is currently in the overbought territory, hinting at a potential pullback in prices, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.She said that the ongoing trend is indicating strength with the current price positioning above the 21 and 50-day Exponential Moving Averages (EMAs).

The Anand Rathi analyst sees key resistance levels at Rs 66,040-Rs 66,356 while support at Rs 65,500-Rs 65,050.

Intraday Trading Strategy

– Buy MCX April Gold futures at Rs 65,600 with a stop loss of Rs 65,100 and a price target of Rs 66,300.

– Buy MCX May Silver futures at Rs 75,500 with a stop loss of Rs 74,500 and a price target of Rs 77,500.

MCX Gold and Silver ended mixed on Monday with the former settling with an uptick of Rs 26 per 10 grams or 0.04% at Rs 65,634 while the latter ended down by Rs 6 at Rs 75,490 per kg.

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