Today’s gold price: The range-bound yellow metal’s losses extend to Rs 1,200/10 grams in 2024. What actions should traders take?
Gold prices were trading in a narrow range early Wednesday, despite a steady dollar index (DXY). Meanwhile, investors are waiting for the US inflation report, which is due later this week.
MCX February gold futures were trading with a positive bias in the opening trade, taking cues from the international market. They were trading around Rs 62,230 per 10 grams, up Rs 51 or 0.08% from the previous day’s close. In the meantime, March silver futures were trading at Rs 72,075 per kg, up Rs 28 or 0.04%.
Early on Wednesday, despite a stable dollar index (DXY), gold prices were moving in a narrow range. Investors are waiting for the US inflation report, which is expected later this week, in the interim.
Taking their cues from the global market, MCX February gold futures opened trade with a positive bias. They were up Rs 51, or 0.08%, from the close of the previous day, trading at about Rs 62,230 per 10 grams. March silver futures, meanwhile, were up Rs 28 or 0.04%, trading at Rs 72,075 per kg.
As the market watches this week’s critical US inflation report, which could impact when the Federal Reserve changes monetary policy, gold prices are remaining stable. The outlook for interest rate reductions may be impacted by the report’s predicted slow disinflation in important categories, according to Neha Qureshi, senior technical and derivative analyst at Anand Rathi Commodities & Currencies.
According to Qureshi, the MACD has given a negative crossover, adding to the bearish outlook, and the MCX February Gold contract has broken out of its rising channel on the daily chart, indicating bearishness. Not helping the yellow metal’s cause, the price is currently trading below its 21 and 50 DEMA while the RSI is forming lower highs and lower lows.
Gold prices ended the week on a flat note on Tuesday. Following the FOMC minutes’ statement that the exact timing of the interest rate reduction is still unknown, the dollar index has rebounded from its previous lows. In the physical markets, there is also little demand for gold and silver, according to Anuj Gupta, Head of Commodities & Currency at HDFC Securities.
MCX February contract is trading between Rs 61,700 and Rs 62,500, while Comex gold is trading between $2,025 and $2,035 today, according to him. Regarding silver, the March contracts are anticipated to trade between Rs 71,500 and Rs 73,000.
MCX gold futures began this year on a weak note and continued to be so into the second week, according to Gupta of HDFC Securities, after finishing 2023 with gains of 15.22%, or by Rs 8,372 per 10 grams. The Commodity & Currency Head at HDFC Securities stated that during the past two sessions, silver futures have corrected by 3.20%, or Rs 2,383 per kg, while gold has decreased by 1.62%, or Rs 1,024 from the closing price of 2023.
Intraday Trading Strategy by by Neha Qureshi
– With a stop loss of Rs 62,500 and a price target of Rs 61,500, sell the MCX February Gold futures at Rs 62,200.
– With a stop loss at Rs 73,000 and a price target of Rs 70,000, sell MCX March Silver futures at Rs 72,000.
Intraday Trading Strategy by by Neha Qureshi
– With a stop loss at Rs 62,550 and a price target of Rs 61,950, sell the MCX February gold futures at Rs 62,350.
– With a stop loss at Rs 73,080 and a price target of Rs 71,300, sell MCX March silver futures at Rs 72,300.
