Gold Price Today: Yellow metal falls Rs 880/10 grams from lifetime high. Is it time to book profit?
Gold prices fell in the opening trade on Friday amid strength in the dollar index (DXY) which breached the 104 mark. The MCX April gold futures were trading at Rs 66,058 per 10 grams, down by Rs 131 or 0.2% while May silver futures were trading at Rs 74,578 per kg, lower by Rs 503 or 0.97%.
Gold has corrected by Rs 885 from its lifetime high of Rs 66,943 which it hit on Thursday.
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In the international markets, the prices shot up above the $2,220 per troy ounce mark.
The Dollar Index (DXY) has shot back above the 104 mark against a basket of six top currencies and was hovering at 104.20, rising 0.77 points or 0.74%. It has gained 0.74% over the past five trading sessions.
MCX Gold and Silver ended with minor declines on Thursday with the former settling with a downtick of Rs 9 per 10 gram or 0.01% at Rs 66,180 while the latter ending down by Rs 47 or 0.06% at Rs 75,034 per kg.
As the FED maintains hope for three rate cuts in 2024, gold prices reached a fresh high of $2,224, analyst Sachin Kothari, Director at Augmont Gold said as he finds the FOMC statement neutral. He expects the rally in yellow metal to continue till $2,350 in the short term.”Gold’s price remained stable after a day of significant fluctuations, reaching a new all-time high before dropping as the US dollar strengthened due to positive economic news. This week, gold’s value increased by 1.3%, fueled by hopes that US interest rates might be cut later this year, despite the Federal Reserve‘s recent decision to keep its plans for three rate cuts in 2024. Lower interest rates often boost gold, which does not earn interest,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.On the Daily chart, the April MCX gold contract has formed an inverted hammer candlestick pattern which indicates bearishness, Qureshi said while highlighting that the Relative Strength Index (RSI) was also in the overbought territory which could trigger potential retracement in prices. A surge beyond the Rs 66,044 mark would solidify the bearish outlook, she said.
The Anand Rathi analyst sees resistance at Rs 66,356- Rs 66,900 while support at Rs 65,550- Rs 65,050.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX April gold futures at Rs 66,200 with a stop loss of Rs 66,700 and a price target of Rs 65,500.
– Sell MCX May silver futures at Rs 75,000 with a stop loss of Rs 76,000 and a price target of Rs 73,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)