Gold prices edged lower on Monday as the US dollar firmed and dust around the global banking crisis settled. The yellow metal futures were trading in the red on MCX and Comex around 9:30 IST.
On MCX, the April Gold futures were trading at Rs 59,105 per 10 grams, down Rs 168 or 0.28% while May Silver futures were trading at Rs 70,300 per kg, down Rs 111 or 0.16%.
On Comex, gold futures were trading $7.30 or 0.37% lower at $1,976.50 while Silver futures were down $0.129 or 0.550% to trade at $23.210.
“Spot gold may test a support at $1,963 per ounce, a break below which could open the way towards $1,934-$1,952 range,” Reuters reported quoting Wang Tao market analyst for commodities and energy technicals.
“The metal failed three times to break a resistance at $2,005. The failures suggest the formation of a top. A five-wave cycle from the Feb. 28 low of $1,804.20 could be ending,” the report said, adding that the immediate resistance is at $1,981, a break above which could lead to $1,992-$2,005 range.
“MCX Gold futures have gained 7.52% on the year-to-date basis and have risen 6.60% in March,” said Anuj Gupta, Vice President (VP), Commodity and Currency Research at IIFL Securities. As for Silver futures, the YTD upside has been 1.34 while the month-to-date gains are around 8.43%, he added.
Intraday Trading Strategy by Anuj Gupta
Buy MCX April Gold futures at Rs 59,000 with a stop loss of Rs 58,700 and price target of Rs 59,500
Buy MCX May Silver futures at Rs 69,800 with a stop loss of Rs 69,000 and target of Rs 70,900
Indian investors looking to take positions in gold and silver must watch out for the movement of rupee against the greenback. A stronger dollar makes dollar-priced commodities less appealing to holders of other currencies.
“Rupee is likely to remain in a range as we approach the month-end, quarter-end, and year-end,” Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP said.
“The FEX reserves rose by nearly $13 billion as RBI bought dollars to keep rupee well within the range of 82-83. The RBI was also the seller of the dollars in the month of January 2023 ensuring that it did not cross 83,” Bhansali added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)