Notwithstanding a slight positive bias in bullion in Friday’s morning trade, gold and silver continue to tread in weak territory. Lack of demand, the likelihood of pushback in Fed rate cut and uptick in the dollar index have contributed to its decline this year.

Taking cues from the global price trends, the MCX April gold futures were trading at 62,447 per 10 grams at 9:20 am, up by Rs 4 or 0.01%, and the March Silver contracts were up by Rs 140 or 0.20% at Rs 70,977 per kg.

On the Comex, gold futures were trading at $2,049.20 per troy ounce, up by $1.30 or 0.06%, while silver futures were hovering at $22.670 per troy ounce, up by $0.034 or 0.150%.

The dollar index (DXY) was trading at 104.15 against a basket of six top currencies, down by 0.02 points or 0.02%. It has extended its gains by 0.21% over the past five trading sessions.

On Thursday, the MCX Gold April contract closed flat at Rs 62,450, up by Rs 7 or 0.01% while the March Silver futures settled at Rs 70,830, lower by just Rs 7 or 0.01%.

“Lower level buying and weakness in dollar giving support to the bullions however no big triggers presently in the market which curbing big moves in gold and silver,” Anuj Gupta of HDFC Securities said. He sees MCX Gold trading between Rs 62,200 and Rs 62,600 today while silver trading at Rs 70,000-72,000.Gold’s year-to-date (YTD) losses are at Rs 748 per 10 grams or 1.18% while month-to-date (MTD) decline stands at Rs 280 or 0.44%, Gupta informed. As for Silver, the YTD decline stands at Rs 3,544 per kg or 4.76% while MTD fall at Rs 1362 or 1.89, he added.Meanwhile, Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies attributes gold’s recent downtick to not enough clarity on the timing of the rate cut. Moreover, the recent strong US jobs data is expected to have pushed back the possibility of any immediate rate cut, she opined.

On the daily chart, the April contract for MCX Gold has broken out of its downward trend channel and failed to stay above 62,950, Qureshi said, adding that the yellow metals futures were trading below their 21 & 50-day Double Exponential Moving Average (DEMA), which indicates bearishness. The Relative Strength Index (RSI) indicates a negative divergence is further corroborating to the bearish outlook. She sees resistance at Rs 62,800-63,100 with support Rs 62,100-61,800.

Price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 63500 per 10 gram while those of 1 kg of Silver is Rs 72,500. Click to know more

Intraday Trading Strategy by Neha Qureshi

– Sell MCX April Gold futures at Rs 62,500 with a stop loss of Rs 62,900 and a price target of Rs 62,000.

– Buy MCX March Silver futures at Rs 70,800 with a stop loss of Rs 69,800 and a price target of Rs 72,800.

(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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