Bullion gained on Friday in the opening trade amid weakness in the dollar index (DXY) which was trading with a negative bias against six top global currencies.
The MCX December gold futures were trading at Rs 56,730 per 10 gram, up by Rs 122, or 0.22%. Meanwhile, December Silver futures were trading at Rs 66,999 per kg, higher by Rs 231 or 0.35%.
The dollar index (DXY) was hovering near 106.54, down by $0.26 or 0.25%.
On Comex, gold futures were trading at $1,837.50 per troy ounce on Friday, up by $5.70 or 0.31% while silver futures were at $21.160, higher by $0.141 or 0.670%.
The December Gold futures had ended with declines of Rs 119 or 0.21% per at Rs 56,602 on Thursday while the December Silver futures closed lower at Rs 66,785, down by Rs 100 per kg or 0.15% on a holiday curtailed trading session.
Gold futures are down 1.54% or by Rs 885 on the month-to-date basis while they have gained 3.09% or by Rs 1,713 on the year-to-date basis, Anuj Gupta, Head Commodity & Currency at HDFC Securities told ETMarkets.
As for Silver futures, the declines are to the tune of 4.11% or Rs 2,870 in September while the declines this year stand at 3.45% or Rs 2402, he said.
Gold is currently trading at seven month lows.
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies, sees December Gold futures currently forming an M-pattern on the daily charts and has given breakdown of its neckline which is at Rs 58,655 level, indicating bearishness, she said.
“The price is currently trading below both its 100-day and 200-day Exponential Moving Averages (EMA), which are acting as strong resistance levels. The MACD indicator has given a negative crossover, indicating a bearish trend. Additionally, the RSI has shown negative divergence, suggesting a potential move to the downside,” Qureshi said.
She sees resistance at Rs 57,017-57,426 while resistance at Rs 56,353-56,150.
The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 58,000 per 10 gram while Rs 69,000 for silver.
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Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 56605,with a stop loss of Rs 56,500 and a price target of Rs 56,780.
– Buy MCX December Silver futures at Rs 66,550 with a stop loss of Rs 66,050 and a price target of Rs 67,300.
Intraday Trading Strategy by Neha Qureshi
– Sell MCX December Gold futures at Rs 56,700 with a stop loss of Rs 57,200 and a price target of Rs 56,000.
– Sell MCX December Silver futures at Rs 67,000 with a stop loss of Rs 68,000 and a price target of Rs 65,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)