Gold prices were down on Monday in the morning trade amid continued strength in the dollar index (DXY) which was up 0.12% at 105.49 against six major currencies.
The MCX October gold futures were trading down by Rs 61 or 0.10% from the Friday closing price at Rs 58,885 per 10 gram on the MCX while the December Silver futures were trading at Rs 73,190 per kg, lower by Rs 147 or 0.20%.
On Comex, gold futures were trading at $1,942.25 per troy ounce on Monday, down by $2.85 or 0.15% while silver futures were at $23.770, lower by $0.071 or 0.30%.
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies sees MCX gold October futures remaining stuck in a sideways pattern on the daily chart, trading within a range between Rs 58,300 and Rs 59,400.
Currently, gold is trading near its 50-day and 100-day Exponential Moving Averages (EMA), which are acting as resistance levels, she added.
“The Relative Strength Index (RSI) is indicating a bearish sentiment with a negative divergence. If the price goes up, it may encounter resistance around Rs 59,200-59,670, while on the downside, there’s support at approximately Rs 58,600-58,275,” Qureshi said.
Gold futures are down 0.83% or by Rs 494 on the month-to-date basis while they have gained 7.02% or by Rs 3,863 on the year-to-date basis, Anuj Gupta, Head Commodity & Currency at HDFC Securities, of HDFC Securities told ETMarkets. As for silver futures, the declines are to the tune of 3.21% or Rs 2,435 in September while the gains this year stand at 5.53% or Rs 3,837, he said. Gupta sees gold testing levels of $1,915-$1,920.
The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 59,800 per 10 gram while Rs 75,200 for silver.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX October Gold futures at Rs 58,900 with a stop loss of Rs 58,600 and a price target of Rs 59,300.
– Buy MCX December Silver futures at Rs 73,100 with a stop loss of Rs 72,100 and a price target of Rs 75,100.
Intraday Trading Strategy by Anuj Gupta
– Sell MCX October Gold futures at Rs 58,980 with a stop loss of Rs 59,100 and a price target of Rs 58,680
– Buy MCX December Silver futures at Rs 72,950 with a stop loss of Rs 72,525 and a price target of Rs 73,700.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)