Gold Rate Today: Yellow metal gains as dollar weakens. What should investors do?

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Taking cues from the price of yellow metal in the international market, MCX February gold futures were trading at Rs 62,512 at the opening time, up Rs 46 or 0.07% from Thursday’s closing price.

Meanwhile, the March Silver futures were trading at Rs 74,649 per kg, higher by Rs 336 or 0.45%. Read More

In the international market, gold prices rose amid a slip in the dollar index below the 104 mark. On Comex, Gold futures were trading at $2,048.60 per troy ounce, up by $2.20 or 0.11% while Silver futures were trading at $24.170, higher by $0.111 or 0.460%.

The dollar index (DXY) was up $ 0.05 or 0.05% against a basket of six top currencies and hovering around 103.59. The DXY has fallen by 2.14% in the last one month.

The February Gold contract ended Thursday with declines at Rs 62,500, down by Rs 34 or 0.05%. As for Silver futures, the March contract settled at Rs 74,380, down by Rs 67 or 0.09%.

“Gold fluctuated around $2,030 an ounce as traders awaited the US jobs report to gauge the Federal Reserve’s monetary policy direction. The precious metal had a volatile week, reaching a record high on Monday but retracting due to concerns about aggressive bets on looser monetary policy,” Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said.
Traders remained cautious after Thursday’s data indicated a cooling US labour market. The upcoming non-farm payrolls report on Friday will be crucial for shaping expectations regarding future interest-rate moves, she said, adding that the recurring jobless claims dropped by 64,000 to 1.86 million, but swaps markets indicate a 60% chance of monetary loosening at the March central bank meeting. On technical charts, the MCX February gold contract finds support at Rs 61,945, suggesting a potential relief from downward momentum, Qureshi said. A breakout above 62,800 is crucial for a continuation of the rally, but a sideways momentum is also possible, she added.

The Anand Rathi analyst sees resistance at Rs 62,750 – Rs 62,975 while support at Rs 62,300 – Rs 62,000. Click to know more

Intraday Trading Strategy by Neha Qureshi
– Sell MCX February Gold futures at Rs 62,600 with a stop loss of Rs 62,800 and a price target of Rs 62,200.

– 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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