Gold traded in the red on Wednesday in the early trade with dollar shooting to a six month high level. The MCX October gold futures were trading down by Rs 58 or 0.10% from the Tuesday closing price at Rs 59,185 per 10 gram on the MCX while the December Silver futures were trading at Rs 73,431 per kg, lower by Rs 14 or 0.02%.
On Comex, Gold futures were trading at $1,951 per troy ounce on Wednesday, down by $1.60 or 0.08% while Silver futures closed at $23.885, higher by $0.012 or 0.050%.
The DXY was trading flat at 104.75 against a basket of six top currencies, up by 0.49%.
The October Gold futures had ended with losses of Rs 145 or 0.24% per 10 gram at Rs 59,248 on Tuesday while the December Silver futures closed lower at Rs 73,440, down by Rs 1,081 per kg or 1.45%.
Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking finds bullion weak on daily charts with momentum indicator RSI indicating the same. His advice to the traders is to book their long positions and look to make fresh short positions in gold and silver futures near the resistance level of Rs 59,500 – Rs 59,700 with the stop loss around this level. He sees support at Rs 59200 – Rs 59,000.
Gold futures are down 0.22% or by Rs 131 on the month-to-date basis while they have gained 7.68% or by Rs 4,226 on the year-to-date basis, Anuj Gupta, Head Commodity & Currency at HDFC Securities told ETMarkets.
As for Silver futures, the declines are to the tune of 2.96% or Rs 2,237 in September while the gains this year stand at 5.81% or Rs 4,033, he said.The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 60,500 per 10 gram while Rs 75,500 for silver.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX October Gold futures at Rs 59,100 with a stop loss of Rs 58,800 and a price target of Rs 59,600.
– Buy MCX September Silver futures at Rs 73,000 with a stop loss of Rs 72,500 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)