Gold futures traded flat on the MCX in Wednesday’s trade as a stable dollar index kept gains for the bullion in check. MCX Silver futures, meanwhile, hit an 8-month low.

The dollar has gained nearly 2% over the past one month negating gains for bullion from the US debt crisis and economic uncertainties in the world’s largest economy.

The June Gold futures were trading at Rs 60,221 on the MCX at 10:50 am, rising Rs 24 or 0.04% from Tuesday’s closing price. The July Silver futures were trading at Rs 71,860 per kg, dropping Rs 304 or 0.42% around this time.

“MCX Gold futures have gained 9.60% or Rs 5,278 on the year-to-date (YTD) basis while 0.51% or by Rs 305 on the month-to-date basis,” said Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities. “As for silver futures, the YTD gains stood at 3.70% or Rs 2,565 as of Tuesday’s closing price while this precious metal has lost nearly 3% or Rs 2,225 in May,” he added.

Gold price today in Delhi is around Rs 61,500 per 10 grams.

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On the Comex, gold futures were trading at $1,979.80 per troy ounce and were up by $5.30 or 0.27% while silver futures were trading at $23.575 per troy ounce, down by $0.049 or 0.21%.
“Gold is still stuck in a broad range of $1,950-$2,000, which reflects volatility in the metal,” Praveen Singh – Associate Vice President, Fundamental Currencies and Commodities at Sharekhan said. “Amid the US debt ceiling deadlock, the metal is somewhat bearish in the near-term,” he added.
Intraday Trading Strategy by Anuj Gupta

– Buy MCX June Gold futures at Rs 60,000 with a stop loss of Rs 59,700 and price target of Rs 60,700

– Buy MCX July Silver futures at Rs 71,600 with a stop loss of Rs 71,000 and price target of Rs 72,700.

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