The prospect of no further rate hikes by the US Federal Reserve is boosting the appeal of gold, which has risen to three-week highs. The yellow metal traded with a positive bias on Thursday, aided by a weak dollar.
Taking cues from international prices, MCX December gold futures opened in the green at Rs 61,100 per 10 grams, up Rs 76 or 0.12% from the previous day’s close. In the meantime, December silver futures were trading at Rs 73,008 per kg, up Rs 182 or 0.25%.
Gold futures were trading at $1,994.70 per troy ounce on the Comex on Thursday, up $1.90 or 0.10%, while silver futures were trading at $23.735, up 0.047 or 0.20%.
The dollar index was trading at 103.75 against a basket of the top six currencies, down $0.18 or 0.17% with a negative bias. It has reached an 11-week low.
On Wednesday, December gold futures settled at Rs 61,018 (down 207 or 0.34%), while December silver futures settled at Rs 72,781 (down 523 or 0.71%).
According to Anuj Gupta, Head Commodity & Currency, HDFC Securities, Comex gold will trade between $1,985 and $2,010, while MCX gold will trade between Rs 60,800 and 61,500. Silver futures are expected to trade between Rs 72,500 and 73,500 in December.
Gold futures on the MCX have gained 0.14%, or Rs 84 per 10 gram, month to date, according to Gupta. On a year-to-date basis, they were up 10.92% or Rs 6,007 as of Wednesday, November 22 on the closing price basis.
Meanwhile, silver futures gained nearly Rs 1,157 or 1.61% in value terms in November, while rising 4.92% or Rs 3,413 year to date, according to a commodity and currency analyst.
Gold fell on Wednesday as US bond yields rose due to higher consumer inflation expectations, with investors looking for Fed signals, according to Neha Qureshi, Senior Technical and derivative Analyst at Anand Rathi Commodities & Currencies.
The metal’s repeated challenge to break through $2,000 suggests a potentially strong finish to the year, but she believes a stronger conviction on Fed rate cuts is required for sustained demand.
On the daily charts, the Gold December contract recently reversed near the resistance level of Rs 61,400, and if it falls below this level, the trend could shift from sideways to downward, according to Qureshi. The analyst at Anand Rathi sees resistance at Rs 61,250-61,500 and support at Rs 60,980-60,700.
Today, Qureshi and Gupta pursued a diverse trading strategy.
Anuj Gupta’s Intraday Trading Strategy
- Sell December Gold futures on the MCX at Rs 61,250, with a stop loss of Rs 61,400 and a price target of Rs 60,980.
- Sell September Silver futures on the MCX at Rs 73,200, with a stop loss of Rs 74,000 and a price target of Rs 72,180.
Neha Qureshi’s Intraday Trading Strategy
- Sell December Gold futures on the MCX at Rs 61,250, with a stop loss of Rs 61,400 and a price target of Rs 60,900.
- Sell MCX December Silver futures at Rs 73,000 with a Rs 74,000 stop loss and a Rs 71,000 price target.
