The MCX December gold futures were trading at Rs 59,045 per 10 gram, down by Rs 121, or 0.20%.
Meanwhile, the December silver futures were trading at Rs 70,785 per kg, lower by Rs 252 or 0.58%. Both gold and silver gained over 4% in the week gone by.
On Comex, Gold futures were trading at $1,929.20 per troy ounce on Tuesday, down by $12.30 or 0.63% while Silver futures were at $22.725, higher by $0.170 or 0.74%.
The dollar index (DXY) which has an inverse relation with the gold price movement was trading at 106.30 against six top global currencies and was up by $0.06 or 0.05%.
“Overall the technical trend of gold is sideways to up. The war situation is still unfolding and may give support to gold prices further,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said. He sees trading range on MCX between Rs 58,700 and Rs 59,300 levels.
Gold futures are up 2.72% or by Rs 1,559 on the month-to-date basis while they have gained 7.56% or by Rs 4,141 on the year-to-date basis, Gupta said. As for silver futures, the gains are to the tune of 1.65% or Rs 1,396 in October while the price uptick this year stands at 2.30% or Rs 1,560, he said.
On the daily chart, gold December futures are establishing a pattern of higher highs and higher lows and have successfully broken above their 200-day Exponential Moving Average (EMA), Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, adding that the RSI is also forming a pattern of higher highs and higher lows, indicating a bullish sentiment.
Moreover, the Moving Average Convergence Divergence (MACD) has produced a positive crossover, signaling bullishness in the market, she added.
She sees resistance at Rs 59,700-60,200 while support at Rs 58,655-58,200.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,200 per 10 gram, while the price of 1 kg of silver is Rs 73,800.
Neha Qureshi of Anand Rathi and Gupta of HDFC Securities took opposite intraday strategies.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 59,300 with a stop loss of Rs 59,000 and a price target of Rs 59,700.
– Buy MCX December Silver futures at Rs 71,500 with a stop loss of Rs 70,500 and a price target of Rs 73,500.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX December Gold futures at Rs 59,125,with a stop loss of Rs 59,300 and a price target of Rs 58,800.
– Sell MCX December Silver futures at Rs 70,850 with a stop loss of Rs 71,180 and a price target of Rs 70,150.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)