Gold traded range bound on Wednesday, though the bias remained negative as Street awaits the FOMC policy outcomes, later today.
Yellow metal’s slide was despite some weakness in the dollar index (DXY) which was hovering around the 105.14 mark against a basket of six top currencies, down 0.05%.
The MCX October gold futures were trading down by Rs 44 or 0.07% from the Monday closing price at Rs 59,238 per 10 gram on the MCX while the December Silver futures were trading at Rs 72,298 per kg, higher by Rs 271 or 0.37%.
Dollar Index (DXY) crossed the 105 mark on Monday against the basket of six top currencies and was down by 0.07%.
On Comex, Gold futures were trading at $1,949 per troy ounce on Wednesday, down by $2.20 or 0.11% while Silver futures were at $23.345, lower by $0.111 or 0.470%.
The October gold futures had ended with gains of Rs 11 or 0.02% per 10 gram at Rs 59270 on Tuesday while the December Silver futures closed lower at Rs 72,550, down by Rs 20 per kg or 0.03% on a holiday curtailed trading session. The commodity market was closed for trading in the first session between 9 am and 5 pm.
Gold futures are down 0.15% or by Rs 92 on the month-to-date basis while they have gained 7.75% or by Rs 4,265 on the year-to-date basis, Anuj Gupta, Head Commodity & Currency at HDFC Securities, of HDFC Securities told ETMarkets. As for silver futures, the declines are to the tune of 4.11% or Rs 3,113 in September while the gains this year stand at 4.55% or Rs 3,156, he said.
The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 60,500 per 10 gram while it is Rs 74,500 for silver.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX October Gold futures at Rs 59,150 with a stop loss of Rs 58,950 and a price target of Rs 59,325.
– Sell MCX December Silver futures at Rs 72,700 with a stop loss of Rs 73,200 and a price target of Rs 71,900.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)