Gold Rate Today: Strong US economic data spoils party for yellow metal. Should you buy or sell?

Strong economic data in the US seemed to have spoiled the party for Gold in back-to-back sessions as the yellow metal traded in the red on Thursday despite a minor uptick in the dollar index (DXY). While Street is expected to assess more economic indicators to guess the Fed’s move on the interest rate front, the current development is expected to have thrown a spanner.
“Gold stabilised after dropping 0.8% on Wednesday due to a robust US business activity report, raising doubts about a March interest-rate cut by the Federal Reserve. The S&P Global index grew in January, boosting confidence, while lower odds for a rate cut and higher Treasury yields pressured gold, which currently stands at $2,016.03 an ounce,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
Taking cues from the international market, MCX February gold futures were trading at Rs 61,872 per 10 grams, down Rs 113 or 0.18%. Meanwhile, the March Silver futures were trading at Rs 71,680 per kg, marginally down by Rs 189 or 0.26%.

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Comex Gold futures were trading at $2,015.80 per troy ounce on Thursday, down by $0.20 or 0.01% while Silver futures were trading at $22.860, lower by $0.029 or 0.130%.

The dollar index (DXY) was trading slightly lower at 103.32 against a basket of six top currencies, up by 0.09 points or 0.08%. It has extended losses by 0.21% over the past five trading sessions.
On the daily chart, MCX February Gold futures have given a breakdown from their rising channel forming lower highs and lower lows pattern while the MACD has given a negative crossover indicating bearish sentiments, Qureshi said. Moreover, the 21-day EMA crossing below the 50-day EMA corroborates to the bearish outlook, she added. The Anand Rathi analyst sees resistance around Rs 62,500 – Rs 63,000 while support at Rs 61,530 – Rs 61,000.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,500 per 10 grams while those of 1 kg of Silver is Rs 72,000.

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Intraday Trading Strategy by Neha Qureshi

– Sell MCX February Gold futures at Rs 62,000 with a stop loss of Rs 62,400 and a price target of Rs 61,300.

– Sell MCX March Silver futures at Rs 72,000 with a stop loss of Rs 73,000 and a price target of Rs 70,000.

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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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