Tracking a rally in the international market, gold prices in India also surged to fresh lifetime highs on MCX. February gold futures hit an all-time high Rs 64,063 per 10 grams in Monday’s trade while on the Comex a peak of $2,146.79 per troy ounce was scaled.
The rally in yellow metal is amid a growing belief that the US Federal Reserve could begin a rate cut cycle sooner than later. Last week Chair Jerome Powell said that the Central Bank is now convinced that the elevated rate regime was slowing the economy, lending hopes that the rate hike cycle is over. Click to know more
At 12:45 pm today, MCX February gold futures were trading at Rs 63,664, up Rs 307 or 0.82% from Friday’s closing price. Meanwhile, the March Silver futures were trading at Rs 77,951 per kg, lower by Rs 136 or 0.17%.
On Comex, Gold futures were trading at $2,095 per troy ounce, up by $5.80 or 0.28% while Silver futures were trading at $25.745, lower by 0.11 or 0.43%.
The gains in bullion were despite the dollar index (DXY) holding steady above the 103 mark against a basket of six major currencies though the bias was positive. It was at 103.34 around this time, up by $0.07 or 0.07%.
Analyst Jateen Trivedi, Vice President, Research Analyst at LKP Securities said that the rally has been driven by expectations that the Federal Reserve will maintain interest rates this month and potentially cut them in 2024. “Despite Fed Chair Jerome Powell’s caution against premature rate-cut expectations, traders are confident in a 60% chance of a rate reduction in March, fully pricing in a cut by May,” Trivedi said.
On Friday, the February contract hit a new lifetime high of Rs 63,382 and ended the session flat at Rs 63,355. As for Silver futures, the March contract settled at Rs 77,965, down by Rs 122 or 0.16%.
On the daily chart, December Gold contract is forming higher high and higher lows indicating bullishness in the market while MACD indicator has shown a positive crossover indicating bullish sentiments, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
The Anand Rathi analyst sees resistance at Rs 63,500 – Rs 63,850 while support at Rs 63,180 – Rs 62,800.
Anuj Gupta, Head Commodity & Currency, HDFC Securities expects gold to trade in a bullish zone. In the immediate term, he sees MCX gold testing RS 64,000 – Rs 64,800 while Silver futures trading between Rs 80,000 and Rs 82,000. On Comex, gold contracts could regain the $2,100 mark followed by $2,125 and $2,155, he said, adding that for Silver the next levels are $26/$27/$29.
Gold futures on the MCX have gained by 2.08% or Rs 1,300 per 10 gram on the month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. They were up by 16.21% or Rs 8,919 on the year-to-date basis as on Wednesday, November 29 on the closing price basis. Meanwhile, Silver futures have gained nearly Rs 755 or 0.98% in value terms in December while gaining by 12.76% or Rs 8,857 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 64,500 per 10 gram while those of 1 kg of Silver is Rs 79,500.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX February Gold futures at Rs 63,880 with a stop loss of Rs 63,700 and price target of Rs 64,250.
– Buy MCX March Silver futures at Rs 78,300 with a stop loss of Rs 77,780 and price target of Rs 79,080.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX February gold futures at Rs 63,300 with a stop loss of Rs 63,000 and a price target of Rs 63,700.
– Buy MCX March silver futures at Rs 78,000 with a stop loss of Rs 77,000 and a price target of Rs 80,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
