Gold Rate Today: Yellow metal slips further on gains in greenback. What should investors do?

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Gold prices fell on Thursday, dragged by an uptick in the dollar index which has managed to claw back to levels above 104 after falling to nearly 11-week lows. It is now trading at two-week highs.

MCX February gold futures were trading at Rs 62,413 at the opening time, down Rs 27 or 0.04%, tracking a fall in international prices. Meanwhile, the March Silver futures were trading at Rs 74,698 per kg, lower by Rs 133 or 0.18%.

On Comex, Gold futures were trading at $2,045.90 per troy ounce, down by $2 or 0.10% while Silver futures were trading at $24.140, higher by $0.088 or 0.360%.

The February Gold contract ended Wednesday with declines at Rs 62,391, down by Rs 49 or 0.08%. As for Silver futures, the March contract settled at Rs 74,770, down by Rs 61 or 0.08%.

Gold futures on the MCX have lost by 0.36% or Rs 226 per 10 grams on the month-to-date basis, Anuj Gupta, Head Commodity & Currency, HDFC Securities informed. Meanwhile, Silver futures have declined nearly Rs 2,779 or 3.61% in value terms in December, the commodity and currency analyst said.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,000 per 10 gram while those of 1 kg of Silver is Rs 76,000. Click to know more
“Gold prices inched up slightly to $2,027 per ounce today amid a drop in long-term Treasury yields linked to weak US job market data. The market got a boost as fewer private-sector jobs were created, making some think the Federal Reserve might ease policies next year, seen as good for gold,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.It’s been an up-and-down week for gold. After hitting a record high on Monday gold dropped quickly as traders may have been too hopeful about Fed rate cuts, she opines.

On the technical charts, the February gold contract underwent a correction from its highest point at Rs 64,063 to approximately Rs 61,900, approaching the 50% Fibonacci Retracement level, Qureshi said. If it continues trading below Rs 62,540, there’s a possibility of a sideways to downward momentum, she warns.

The Anand Rathi analyst sees resistance at Rs 62,350 – Rs 62,600 while support at Rs 62,000 – Rs 61,700.

Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,300 with a stop loss of Rs 62,800 and a price target of Rs 61,700.

– Sell MCX March Silver futures at Rs 75,000 with a stop loss of Rs 76,000 and a price target of Rs 73,500.

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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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