Gold rate today: Gold and silver prices reached all-time highs on Monday’s opening trade. Gold contracts on MCX surged to Rs 71,080 per 10 grams, a jump of Rs 440 or 0.62%. Meanwhile, silver futures hit a new peak of Rs 82,064, trading at Rs 81,939, up by Rs 1,076 or 1.33%, by 10:10 AM.
According to ET, the rise in prices was due to a decline in the dollar index (DXY), which was hovering around the 104.25 mark, down by 0.05 or 0.04%. The DXY has decreased by 0.73% over the past five trading sessions.
Last week, June Gold futures on MCX reached a lifetime high of Rs 70,699 per 10 grams, but closed slightly lower at Rs 70,599, down by Rs 37 or 0.05%. Meanwhile, May silver futures hit a record high of Rs 81,030 per kilogram before ending the week at Rs 80,850, down Rs 13 or 0.02%.
Gold futures reached a lifetime high of $2,372 per troy ounce on Comex.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, anticipates that the gold rally is likely to persist as long as prices remain above $2,225. He foresees a potential upward movement for Comex gold towards $2,370 and $2,400 in the short term. For MCX gold, Gupta suggests that the June contract may encounter resistance at Rs 72,650-73,555, with support levels placed at Rs 69,200-69,022.
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Gupta expects that the gold rally will likely persist as long as the price remains above $2,225. He believes that Comex gold could reach levels between $2,370 and $2,400 in the short term. Additionally, he suggests that for MCX gold, the June contract may encounter resistance at Rs 72,650-73,555, with support levels placed at Rs 69,200-69,022.
He notes that prices on MCX have increased by 4.86% or Rs 3,298 in April alone. On a year-to-date basis, the uptick amounts to Rs 7,777 or 12.30%. Regarding the Silver contract, Gupta stated that this month’s gains are at 8.82% or Rs 6,604, while year-to-date gains stand at 9.68% or Rs 7,226.
Gupta also mentioned that the price of gold in significant physical bullion markets such as Delhi, Ahmedabad, and other cities is Rs 71,000 per 10 grams, while the price of 1 kilogram of silver is Rs 82,000.
Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, highlighted that China’s central bank has been consistently buying gold for its reserves for 17 months as of March. This has significantly contributed to the recent surge in gold prices, driving them to a record high. In March, the People’s Bank of China increased its gold reserves by 0.2% to 72.74 million troy ounces. This marks the smallest increment in their monthly purchases since the series began in November 2022. Qureshi emphasized that this buying trend, particularly prominent in China and India, has played a crucial role in bolstering the strength of gold since 2022, alongside expectations of lower US interest rates.
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She added that the accumulation of gold by central banks reflects a wider context of geopolitical tensions and economic uncertainties. This contributes to the metal’s appeal as a safe-haven asset.
Qureshi further noted that on the daily chart, the April MCX Gold contract has exceeded its rising channel pattern, displaying a trend of ascending highs and lows, indicating upward momentum. However, she cautioned against a potential pullback, citing that gold’s RSI (Relative Strength Index) has reached an overbought zone. According to the analyst from Anand Rathi, resistance levels are anticipated at Rs 70,900- Rs 71,300, while support levels are expected at Rs 70,100- Rs 69,700.
Neha Qureshi’s intraday trading strategy is as follows:
– Buy MCX June Gold futures at Rs 70,700 with a stop loss at Rs 70,300 and a target price of Rs 71,300.
– Buy MCX May Silver futures at Rs 80,900 with a stop loss at Rs 79,900 and a target price of Rs 82,900.
