MCX gold futures hit three-month high levels while silver futures sclaed three-week peak as more bad news trickles out of the Middle East, making investors scurry for bullion. Taking cues from the international prices, the MCX December gold futures opened in the green on Wednesday and traded at Rs 59,811 per 10 gram, up by Rs 600, or 1%. Meanwhile, the December Silver futures were trading at Rs 72,552 per kg, lower by Rs 985 or 1.38%.
On the Comex, Gold futures were trading at $1,950.80 per troy ounce on Wednesday, up by $14.70 or 0.76% while Silver futures were at $23.260, higher by $0.236 or 1.030%.
Gold’s strength remained intact even as the dollar index (DXY) traded with a positive bias. It was trading at 106.30 against six top global currencies and was up by $0.06 or 0.05%.
“The escalation of war is supporting the bullions prices as the haven demand has picked up. Moreover, the Chinese positive GDP numbers are supportive for base metals and industrial metals. Overall the technical trend of gold is up,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said. He sees trading range on MCX between Rs 59,000 and Rs 59,700 levels.
Gupta sees gold testing the Rs 60,000 mark while Silver hitting the levels around Rs 73,000 in the immediate term.
“Despite Tuesday’s sideways trade in gold, we believe on-going geopolitical concern continues to provide support at a lower level, and traders should adopt a buy-on-dip strategy,” Saumil Gandhi, Senior Analyst – Commodities, HDFC Securities said.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,200 per 10 gram while those of 1 kg of Silver is Rs 73,800.Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 59,400,with a stop loss of Rs 59,000 and a price target of Rs 60,200.
– 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.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)