Not with standing an uptick in the dollar index (DXY), gold gained on Thursday as investors got back to safe instruments like the US dollar and gold amid deepening Israel-Hamas conflict. Taking cues from international yellow metal prices, MCX gold and silver futures traded with strength.
MCX December gold futures were trading at Rs 60,977 per 10 gram, up by Rs 151, or 0.25%. They are at five month high levels. Meanwhile, the December Silver futures were trading at Rs 71,955 per kg, higher by Rs 168 or 0.23%.
On Comex, Gold futures were trading at $1,998.50 per troy ounce on Thursday, up by $3.65 or 0.18% while Silver futures were at $23.105, higher by $0.098 or 0.430%.
The dollar index was trading at 106.75 against a basket of top six currencies and was up by $0.22 or 0.21% from the last closing.
“Gold ended with gains on Wednesday at Rs 60,801 as the conflict escalation between Israel and Hamas is supporting the safe haven demand for the precious metals,” Analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities said.
Gold may trade between $1,980 to $1,995 on the Comex while the MCX trading range lies between Rs 60,500 and Rs 61,200, Gupta said. As for silver futures, the range is Rs 71,200-72,300, he further said while recommending a buy on dips strategy.
On the daily chart, gold December futures are establishing a pattern of higher highs and higher lows and have successfully broken above their 100-day and 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 61,200-61,500 while support at Rs 60,000-59,600.
The MCX gold futures have gained by 5.56% or Rs 3,201 per 10 gram on the month-to-date basis while their gains in 2023 stand at 10.51% or Rs 5,784, according to Gupta.
As for silver futures, the uptick in October is around 2.76% or Rs 1,929 while the year-to-date gains stand at Rs 3.42% or 2,473 per kg.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,000 per 10 gram while those of 1 kg of Silver is Rs 73,200.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 60,800 with a stop loss of Rs 60,400 and a price target of Rs 61,200.
– Buy MCX December Silver futures at Rs 72,000 with a stop loss of Rs 71,000 and a price target of Rs 74,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)