After hitting a lifetime high of Rs 73,958 in Friday’s opening trade, gold prices on MCX took cues from their international counterparts today and rose by Rs 67 or 0.09% to trade at Rs 71,910 per 10 grams. MCX May silver contracts were up by Rs 460 or 0.56% to Rs 83,273 per kg.
Today is the third straight week in which bullion prices are on an uptrend amid escalating geopolitical tensions and increased central bank purchasing. Concerns over Iran’s retaliation following Israel’s air strike on their embassy near Damascus, coupled with the potential for an intensified conflict in Gaza, have driven investors towards non-yielding assets such as gold and silver, analysts say.
In the U.S. markets, spot gold was up 0.6% at $2,356.69 per ounce, as of 0323 GMT, after hitting an all-time high of $2,431.29 on Friday. U.S. gold futures were steady at $2,373.30.
Today, the US Dollar Index, DXY, was hovering near the 105.93 mark, falling 0.09 or 0.07%.
Goldman Sachs has significantly increased its forecast for the price of gold to $2,700 per ounce by the end of the year. This optimistic outlook is based on several factors, including increased gold buying by central banks in emerging markets and by retail consumers in Asia.
Additionally, anticipated interest rate cuts by the Federal Reserve and potential economic uncertainties related to the US election cycle and fiscal policies contributed to the bullish view on gold. Previously, Goldman Sachs had predicted that gold would reach $2,300 per ounce by year-end.
As per Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies, MCX Gold (June) has displayed an inverted hammer candlestick pattern on the daily chart, signaling potential bearish trends.
The Relative Strength Index (RSI) has entered the overbought territory, hinting at a likely retreat in prices in the near future. Key levels to monitor are resistance at 72300 and 72800, alongside support at 71600 and 71100.
Intraday Trading Strategy by Neha Qureshi:
– Sell MCX JUNE Gold futures at Rs 72000 with a stop loss of Rs 72600 and a price target of Rs 71300– Sell MCX MAY Silver futures at Rs 83000 with a stop loss of Rs 84000 and a price target of Rs 81000
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
