Gold futures traded positive in early trade on Tuesday amid weakness in dollar index (DXY) and slippages in the US bond yields ahead of the inflation and jobs data scheduled for a release this week.
The MCX October gold futures were trading up by Rs 85 or 0.14% from the Monday closing price at Rs 58,972 per 10 gram on the MCX while the September Silver futures were trading at Rs 75,350 per kg, higher by Rs 132 or 0.18%.
On the Comex, Gold futures were trading at $1,949.90 per troy ounce on Tuesday, up by $3.10 or 0.16% while Silver futures were trading at $24.255, higher by $0.003 or 0.010%. The DXY fell below 104.07 against a basket of six top currencies, and was trading at 103.86, down 0.19%.
The October Gold futures had ended with gains of Rs 251 per 10 gram while the September Silver futures closed marginally higher at Rs 73,613, up by Rs 64 per kg.Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL) Broking said that after a positive closing in the previous session, bullion is looking attractive on the daily charts and he expects the upside movement to continue in the near future.
“Momentum indicator RSI is also indicating the same and traders are advised to make fresh buy positions in Gold and Silver near the support levels while putting the stop loss around the support zone,” Khare said, recommending profit booking at resistance levels.
He sees support in October Gold futures at Rs 58,700 – Rs 58,400 while resistance at Rs 59,100 – Rs 59,300. As for September Silver futures support is seen at Rs 73,200 – Rs 72,400 and resistance at Rs 74,200 – Rs 75,000.
Meanwhile, Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies sees a pessimistic outlook for gold in the near term which she said has fallen below their upward trend line support of Rs 58,945 on the daily chart notwithstanding the recovery in price from the critical support level of Rs 58,275. “The Moving Average Convergence Divergence (MACD) indicator has shown a negative signal, highlighting the prevailing bearish sentiment. Noteworthy support levels are projected at 58,400 and 58000, while potential resistance lies at 59,200 and 59,600,” Qureshi said.
The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 60,300 per 10 gram while Rs 75,500 for silver.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX October Gold futures at Rs 58,750 with a stop loss of Rs 58,400 and a price target of Rs 59,150.
– Buy MCX September Silver futures at Rs 73,400 with a stop loss of Rs 72,400 and a price target of Rs 75,400.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)