Gold Rate Today: Yellow metal set for second weekly gains. Should you buy?

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Gold traded with minor gains in the opening trade on Friday, though it appears set to end with weekly gains for the second time in a row. The uptick was on account of weakness in the dollar index (DXY), which is trading at 11-week lows.

Taking cues from the international prices, MCX December gold futures opened in the green and were trading at Rs 61105 per 10 gram, up by Rs 33 or 0.05% from the Thursday closing price. Meanwhile, the December Silver futures were trading at Rs 72,934 per kg, higher by Rs 36 or 0.05%.

On Comex, Gold futures were trading at $1,993.60 per troy ounce on Friday, up by $0.80 or 0.04% while Silver futures were trading at $23.720, higher by 0.032 or 0.14%.

The dollar index was trading at 103.83 against a basket of top six currencies, down by $0.09 or 0.09% though the bias was negative.

The December Gold futures ended at Rs 61,018 on Wednesday, down 207 or 0.34% while the December Silver futures settled at Rs 72,781, lower by Rs 523 or 0.71%.

Gold futures on the MCX have gained by 0.28% or Rs 170 per 10 gram on the month-to-date basis, Analyst Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. They were up by 11.08% or Rs 6,098 on the year-to-date basis as on Thursday, November 23 on the closing price basis. Meanwhile, Silver futures have gained nearly Rs 1227 or 1.71% in value terms in November while gaining by 5.02% or Rs 3,483 on the YTD basis, the commodity and currency analyst said.
“Gold is on track for a second weekly gain due to a weaker US dollar, anticipating looser monetary policy next year. Bullion is just below $2,000 an ounce, benefitting from a 30% chance of the Federal Reserve lowering rates by March. This, along with a weaker dollar, boosts gold’s appeal,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said. On the daily chart, December Gold contract) has formed an inverted hammer candlestick pattern followed by doji indicating bearishness in the market and it is trading above its 50-day and 100-day Exponential Moving Average (EMA), Qureshi said.

Moreover, the Relative Strength Index (RSI) is forming a positive divergence which indicates a bullish sentiment, this analyst said, addingthat a breakout above Rs 61,400 we will see some bullishness below that we may see sideways to downside movement.

The Anand Rathi analyst sees resistance at Rs 61,400-61,900 while support levels at Rs 60,800-60,300.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 61800 per 10 gram while those of 1 kg of Silver is Rs 75,000.

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Intraday Trading Strategy by Neha Qureshi
– Sell MCX December Gold futures at Rs 61,100 with a stop loss of Rs 61,400 and a price target of Rs 60,600.

– Sell MCX December Silver futures at Rs 73,000 with a stop loss of Rs 74,000 and a price target of Rs 71,000.

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

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