On Tuesday, gold and silver closed on a positive note in the national and international markets. The December gold futures contract settled at Rs 76,360 per 10 grams with a gain of 0.41% and the December silver futures contract settled at Rs 91,623 per kilogram with a gain of 0.98%.
The rise is supported by a cautious sentiment in the market and a slight drop in demand for US dollars. Meanwhile, Federal Reserve officials offered no clear signals on future monetary policy, keeping expectations of a 25 basis point rate cut unchanged.
Gold and silver showed very high volatility and recovered from their lows amid a drop in US 10-year bond yields and increasing global instability due to rising government debts.
Today, the US Dollar Index, DXY, was hovering around the 103.19 mark, gaining 0.07 or 0.07%.
Public debts are rising due to weak global economic growth, tight financial conditions, fiscal slippages and unstable economic policies and support for the purchase of precious metals as a safe haven. Geopolitical tensions are already supporting precious metals prices. “Gold on the daily chart is showing strong bullish momentum, with buyers defending support at the 20 SMA around $2,638. The 100 and 200 SMAs are trending up, reinforcing the bullish outlook. The Momentum indicator is close to its 100 line and the RSI is slightly higher at 62, supporting further gains. While bullish momentum is limited in the near term, the risk remains bullish and fresh all-time highs are possible if the $2,638 level holds,” said Neha Qureshi, Senior Derivatives and Technical Analyst at Anand Rathi Commodities. & Currencies.
Neha Qureshi Intraday Trading Strategy:
- Buy MCX December Gold Futures at Rs 76,300 with a stop loss of Rs 76,100 and a target price of Rs 76,600.
- Buy MCX December Silver Futures at Rs 91,500 with a stop loss of Rs 90,500 and a price target of Rs 93,000.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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