Gold’s lackluster trade continued on Wednesday ahead of interest rate decisions from several central banks and a slew of economic data in the United States due for a release.
Taking cues from the international market, MCX February gold futures were trading at Rs 61,976 per 10 grams, up by Rs 8 or 0.01%. Meanwhile, the March Silver futures were trading at Rs 71,000 per kg, marginally up Rs 43 or 0.06%.

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Comex Gold futures were trading at $2,026.20 per troy ounce, up $0.40 or 0.02% while Silver futures were trading at $22.505, higher by $0.043 or 0.190%.

The dollar index (DXY) was trading slightly lower at 103.30 against a basket of six top currencies, down by 0.03 points or 0.03%. It has declined 0.05% over the past five trading sessions.

On Tuesday, the MCX Gold February contract closed flat at Rs 61,967 while the March Silver futures settled at Rs 70,975, higher by just Rs 18 or 0.03%.

“Gold prices are holding steady, cautious due to upcoming US economic data that could impact monetary easing decisions. The metal’s trading range has been tight, influenced by positive economic reports reducing expectations for early Federal Reserve interest-rate cuts. Currently, there’s less than a 50% chance of a March reduction. Key data before the Federal Open Market Committee meeting includes Q4 GDP and the core PCE index,”Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.On the daily chart, MCX February Gold futures have given a breakdown from their rising channel forming lower highs and lower lows patterns 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.

Gold has narrowed its losses to 2.02% or Rs 1,273 per 10 gram in 2024, Anuj Gupta, Head Commodity & Currency, HDFC Securities said. Meanwhile, Silver futures have extended this year’s losses to 4.90% or Rs 3,635 from 4.13% or Rs 3,076 per kg in the last five sessions, Gupta of HDFC Securities said.

After ending 2023 with gains of 15.22% or by Rs 8,372 per 10 gram, MCX gold futures have started this year on a weak note and have carried the sluggishness into the second week as well, Gupta said.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 62,500 per 10 gram 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 61,900 with a stop loss of Rs 62,300 and a price target of Rs 61,300.

– Sell MCX March Silver futures at Rs 71,000 with a stop loss of Rs 72,000 and a price target of Rs 69,000.

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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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