MCX December Gold futures are trading at 4 month high levels riding on fresh impetus from the ongoing Israel-Hamas conflict.
Experts see the haven demand for gold growing and tell ETMarkets why it is a buying opportunity for investors.
MCX Gold futures have gained nearly Rs 3,000 or 5.21% in October largely aided by the Israel-Hamas crisis since last week, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. As for Silver futures, the gains are to the tune of 2.90% or Rs 2,025 on the month-to-date basis, he added.
Notwithstanding a retreat in gold prices on Thursday amid a climb in the dollar index (DXY), Gupta advises investors to capitalise on the opportunity and buy bullion.
“Gold prices increased sharply by 1.47% and closed at Rs 60,073 levels on Wednesday as the yellow metal tested 4 month high levels of Rs 60,259 levels amid geo-political tension,” he added.
MCX December gold futures traded in the red on Thursday at Rs 59,910 per 10 gram, up by Rs 163, or 0.27%. Meanwhile, the December Silver futures were trading at Rs 72,172 per kg, lower by Rs 82 or 0.11%.
On Comex, Gold futures were trading at $1,958.50 per troy ounce on Thursday, down by $9.80 or 0.50% while silver futures were at $23.060, higher by $0.039 or 0.170%.Gold price uptick this year stands at 8.90% or Rs 5,201 while Silver futures have gained 3.30% or by Rs 2,480 in 2023.
On the daily chart, Gold December futures are establishing a pattern of higher highs and higher lows and have successfully broken above their 200-day Exponential Moving Average (EMA), Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said, adding that the RSI is also forming a pattern of higher highs and higher lows, indicating a bullish sentiment.
Moreover, the Moving Average Convergence Divergence (MACD) has produced a positive crossover, signaling bullishness in the market, she added.
She sees resistance at Rs 60,455-61,200 while support at Rs 59,500-59,275.
Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61,200 per 10 gram while those of 1 kg of Silver is Rs 73,800.
Intraday Trading Strategy by Anuj Gupta
– Buy MCX December Gold futures at Rs 59,700,with a stop loss of Rs 59,550 and a price target of Rs 60,025.
– Sell MCX December Silver futures at Rs 71,600 with a stop loss of Rs 71,200 and a price target of Rs 72,400.
Intraday Trading Strategy by Neha Qureshi
– Buy MCX December Gold futures at Rs 60,000 with a stop loss of Rs 59,500 and a price target of Rs 60,700.
– Buy MCX December Silver futures at Rs 72,000 with a stop loss of Rs 71,000 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)