Gold prices were steady though the bias was slightly negative in the early trade on Thursday amid a slip in the dollar index (DXY) which fell below the 104 mark. Street also awaits the latest cues from Fed as a clutch of officials are expected to speak on Fed path later this week.

Taking cues from the global price trends, the MCX April gold futures were trading at 62443 per 10 grams at 9:20 am, down by Rs 81 or 0.13%, the March Silver contracts were down by Rs 186 or 0.26% at Rs 70,125 per kg.

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On the Comex, gold futures were trading at $2,051.60 per troy ounce, down by $0.10, while Silver futures were hovering at $22.305 per troy ounce, down by $0.055 or 0.25%.

The dollar index (DXY) was trading slightly at 103.99 against a basket of six top currencies, down by 0.07 points or 0.06%. It has extended its gains by 0.91% over the past five trading sessions.

On Tuesday, MCX Gold April contract closed flat at Rs 62,497, down by Rs 27 or 0.04% while the March Silver futures settled at Rs 70,255, lower by just Rs 56 or 0.08%.”Gold’s price remained stable as investors are carefully considering comments from US officials, who don’t see an immediate need to lower interest rates, against a backdrop where the Treasury market is showing confidence that the Federal Reserve will cut rates eventually,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said. This year, gold’s price hasn’t changed much because it’s not clear when the Fed will start to ease its monetary policy, she noted as she highlighted Fed’s remaining non-committal on the timing of the rate cut is waning investors’ expectations on an imminent slash.

High interest rates typically have a negative impact on gold since it doesn’t earn interest.

On the daily chart, the April contract for MCX Gold has broken out of its downward trend channel but failed to stay above 62,950, which is also the support level of the 50-day Double Exponential Moving Average (DEMA), Qureshi said. The Relative Strength Index (RSI) indicates a negative divergence, hinting at a bearish outlook, the Anand Rathi analyst said, pegging the key resistance at Rs 62,800-63,100 with support levels at Rs 62,100-61,800.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63,500 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 April Gold futures at Rs 62,600 with a stop loss of Rs 62,900 and a price target of Rs 62,000.

– Sell MCX March Silver futures at Rs 70,300 with a stop loss of Rs 71,300 and a price target of Rs 68,500.

(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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