Gold prices opened with a Rs 440 per 10 grams uptick on the MCX on Wednesday, continuing their winning run over the past one month. While gold hit a lifetime high of Rs 69,487 (April futures) this week, it was trading at Rs 69,369 up by 0.64% over the previous closing price around 10.10 am. Track prices here
MCX silver futures were trading at a 2-year high near 77,957 per kg. They rose Rs 921 or 1.20% in early trade.
The gains were on account of slippages in the dollar index (DXY) and growing hopes of a rate cut by the US Federal Reserve.
The dollar index (DXY) is hovering above the 104 mark against a basket of six top currencies at 104.33, down by 0.02 points or 0.02%. It has narrowed gains to 0.32% over the past five trading sessions.
MCX Gold and Silver futures ended with gains on Tuesday with the June gold contract hitting a fresh lifetime high of Rs 69,139 before settling the day with an uptick of Rs 52 per 10 grams or 0.08% at Rs 68,980. Meanwhile, the May silver contract ended flat at Rs 77,100, up by Rs 64 or 0.08%.
On Comex, the gold futures have scripted a lifetime high of $2,308 per troy ounce.
The dollar index (DXY) fell below the 105 mark, narrowing its gains over the past five sessions to 0.38%. On Wednesday, around 9 am India time, it was trading at 104.75, down by 0.07 points or 0.06%.
Gold has been trading with positivity amid geopolitical tension in the Middle East but the recent uptick in prices has been on account of growing hopes of a rate cut by the US Federal Reserve, Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
The next target for Comex gold is $2,320-$2,400 while for MCX gold it is Rs 70,635-71,750/73,555, Gupta said. As for Comex silver, the HDFC Securities analyst estimates the next targets at $26.94-$28.45/$30.09 and Rs 79,570-84000/87,105 for MCX silver.
The prices have risen by 2.54% or Rs 1,716 on MCX in April so far, Gupta said. On a year-to-date basis, the uptick is Rs 6,185 or 9.79%. As for the Silver contract, the previous month’s gains stand at 4.02% or Rs 3,021 while the YTD gains at 4.89% or Rs 3,622, Gupta added.
On the question if MCX gold could hit the magical Rs 70,000 mark this week, Naveen Mathur, Director – Commodities & Currencies, Anand Rathi Shares and Stock Brokers said that gold’s trajectory will remain bullish in the near term given elevated geopolitical tensions and Fed pivot expectations to keep the yellow metal supportive at lower levels. With US payroll numbers due this week, he expects volatility to persist in prices later in the week as he hopes the level of 70,000 could still be achieved in the timeframe of 1 – 2 weeks on MCX.
The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 69,300 per 10 grams while those of 1 kg of silver is Rs 79,000, Gupta said.
On the daily chart, MCX April Gold futures have surpassed their rising channel pattern, showing a pattern of ascending highs and lows and are indicating an upward momentum, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said even as she warns against a likely pullback in prices with RSI hitting an overbought zone. The Anand Rathi analyst sees resistance points at Rs 69,230 and Rs 69,450 while support at Rs 68,580- Rs 68,100. Click to know more
Trading strategy by Neha Qureshi
– Buy MCX June gold futures at Rs 68,900 with a stop loss of Rs 68,500 and a price target of Rs 69,400.
– Buy MCX May silver futures at Rs 77,000 with a stop loss of Rs 76,000 and a price target of Rs 79,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
