Gold has gained by over Rs 860 in two sessions and is at two week’s high. Moreover, the dollar index (DXY) slipped slightly, aiding the cause of gold.
The MCX December gold futures were trading at Rs 57,728 per 10 gram, up by Rs 156, or 0.27%. Meanwhile, the December silver futures were trading at Rs 68,995 per kg, lower by Rs 99 or 0.14%.
The dollar index (DXY) was hovering near 106.05, against six top global currencies, down by $0.04 or 0.04%.
On Comex, gold futures were trading at $1,876.90 per troy ounce on Tuesday, up by $11.90 or 0.64% while silver futures were at $21.970, higher by $0.460 or 1.210%.
The December Gold futures had ended with gains of Rs 705 or 1.24% per at Rs 57,576 on Monday while the December Silver futures closed lower at Rs 69,126, down by Rs 956 per kg or 1.40% on a holiday curtailed trading session.
Due to geopolitical tensions, the safe haven demand has gone up in bullion and that has reflected in the gains on Monday when gold and silver ended sharply higher, Anuj Gupta, Head Commodity & Currency at HDFC Securities told ETMarkets. Moreover, DXY being in the overbought zone has corrected, which signals support for the gold price, he added.
Gold futures are down 0.05% or by Rs 28 on the month-to-date basis while they have gained 4.64% or by Rs 2,555 on the year-to-date basis, Gupta said.
As for silver futures, the declines are to the tune of 1.09% or Rs 763 in October while the declines this year stand at 0.46% or Rs 319, he said.
On the daily chart, Gold December futures have formed a hammer candlestick pattern followed by a bullish engulfing candlestick pattern and currently the price is trading below both its 100-day and 200-day Exponential Moving Averages (EMA), which is acting as strong barriers,
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, additionally, the MACD indicator has recently crossed into negative territory, indicating a bearish momentum, she said.
A further rebound could be expected as the RSI displays gold in an oversold zone, she opined. She sees resistance at Rs 57,711-58,275 while support at Rs 57,000-56,421.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 59,500 per 10 gram while those of 1 kg of Silver is Rs 73,000.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 57,600 with a stop loss of Rs 57,200 and a price target of Rs 58,200.
– Buy MCX December Silver futures at Rs 69,000 with a stop loss of Rs 68,000 and a price target of Rs 71,000.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 57,400,with a stop loss of Rs 57,300 and a price target of Rs 57,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)