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Gold and silver futures fell on MCX on Thursday as the US dollar index strengthened, dimming the appeal of safe-haven bullion for Indian investors.

April Gold futures were trading at Rs 57,944 per 10 grams at 10:20 am and were down by Rs 392 or 0.67% from Wednesday’s closing price. Meanwhile, May Silver futures were trading at Rs 66,943 per kg and were down by Rs 356 or 0.53% around this time.

On Wednesday, Gold futures settled at Rs 58,338 while Silver futures at Rs 67,340.

“The gain in Gold futures on the year-to-date (YTD) basis is 5.42% while 3.86% on the month-to-date basis,” commodity and currency expert Anuj Gupta said. “As for Silver futures, the prices have recovered sharply in March, gaining 3.49% this month. On the YTD basis, the prices are still in the red,” Gupta said.

Gupta, who is Vice President (VP), Commodity and Currency Research at IIFL Securities recommends a buy on Gold and Silver futures.

“Gold prices bounced back after a pullback seen the other day, as a fresh crisis in the banking sector turned investors turned attention towards the safe haven asset, gold,” Prathamesh Mallya, Assistant Vice President – Research, Non-Agri Commodities, and Currencies at Angel One said.

“With this up-move, the bullion has now climbed to its highest since early February,” he added.Mallya expects gold to trade lower towards Rs 57,680 levels, a break of which could prompt the price to move lower to Rs 57,210 levels.

“Gold prices in pounds reached a new high, and bullion in euros also rose to levels not seen since records were set last year,” the Angel One analyst informed.

Intraday Trading Strategy by Anuj Gupta

1) Buy MCX April Gold futures at Rs 58,000 with a stop loss of Rs 57,650 and price target of Rs 58,600

2) Buy MCX May Silver futures at Rs 66,500 with a stop loss of Rs 65800 and price target of Rs 68000

3) Buy MCX March Copper futures at 750 with a stop loss of Rs 744 and price target of Rs 760

4) Sell MCX March Crude Oil futures at Rs 5,650 with a stop loss of Rs 5,810 and price target of Rs 5,300

“The Gold buyers flexed around $1,920 after refreshing the highest levels in 1.5 months during a stellar show of Credit Suisse (CS) inflicted risk aversion the previous day,” Marc Despallieres, Chief Strategy and Trading Officer at Vantage said.

“The risk profile deteriorates more as the CS episode follows the latest fallouts of the Silicon Valley Bank (SVB) and Signature Bank. The XAUUSD gained bullish momentum during the UK trading session and climbed above $1935 marks, then lost upside traction and closed around the $1920 mark,” Despallieres added.

XAUUSD is a symbol that indicates how many US dollars a trader would require to buy an ounce of gold.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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