Gold extended losses on Monday amid strength in the dollar index (DXY) which has shot up to its 8-week high. The better-than-expected US jobs data has dashed Street’s hopes of an imminent rate cut by the Federal Reserve, strengthening the greenback.

Taking cues from the global prices, MCX April gold futures were trading at 62,900 per 10 grams at 10:30 am, down by Rs 65, and the March Silver contracts were down by Rs 53 or 0.07% at Rs 72,165 per kg.

On the Comex, gold futures were trading at $2,050.10 per troy ounce, down by $3.60 or 0.18%, while Silver futures were hovering at $22.670 per troy ounce, down by $0.126 or 0.550%.

The dollar index (DXY) was trading slightly at 104.08 against a basket of six top currencies, up by 0.16 points or 0.15%. It has appreciated by 0.45% over the past five trading sessions.

On Friday, the MCX Gold April contract closed flat at Rs 62,598, up by Rs 36 or 0.06% while the March Silver futures settled at Rs 71,294, higher by just Rs 86 or 0.12%.

“Strength in the dollar index after the FOMC stated that they are not in a hurry to cut rates led to declines in bullion. The Dollar index is trading at 8 week’s high levels amid positive economic data which has lent support to the dollar index,” Anuj Gupta, Head Commodity & Currency, HDFC Securities said.He sees Comex gold trading at $,2020-$2,035 while the MCX gold contract is trading at Rs 62,000-62,800 levels. Meanwhile, Silver contract is expected to trade between Rs 70,000 and Rs 71,500, Gupta said.Gold’s year-to-date (YTD) losses are at Rs 641 per 10 grams or 1.01% while month-to-date (MTD) declines stand at Rs 173 or 0.28%, Gupta informed. As for Silver, the YTD decline stands at Rs 3,222 per kg or 4.33%, while MTD declines at Rs 1,039 or 1.44%, he added.

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 21-day Exponential Moving Average (DEMA), Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said, adding that the yellow metal is facing resistance at this level, suggesting a potential correction.

The Anand Rathi analyst sees key resistance at Rs 62,950-63,400, while support at Rs 62,270-61,800.

The price of gold in major physical bullion markets like Delhi, Ahmedabad, and other cities is Rs 63,000 per 10 grams while that of 1 kg of Silver is Rs 72,500.

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Intraday Trading Strategy by Neha Qureshi

– Sell MCX April Gold futures at Rs 62,500 with a stop loss of Rs 63,000 and a price target of Rs 61,800.

– Sell MCX March Silver futures at Rs 71,200 with a stop loss of Rs 72,200 and a price target of Rs 69,200.

(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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