Gold rate today: Gold prices rose by Rs 440 per 10 grams on Wednesday on Multi Commodity Exchange (MCX), extending his month-long winning streak. This week, gold hit an all-time high of Rs 69,487 in April futures but was trading at Rs 69,369, up 0.64% from the previous closing price at 10:10 am.
According to ET, MCX silver futures reached a two-year high simultaneously, hovering close to Rs 77,957 per kg, reflecting a significant increase of Rs 921 or 1.20% at the start of trade. The rise in prices was due to declines in the dollar index (DXY) and rising expectations of a rate cut by the US Federal Reserve.
The Dollar Index (DXY) is currently slightly above the 104 mark, standing at 104.33 against a basket of six major currencies. This represents a marginal decrease of 0.02 points or 0.02%. In the last five trading sessions, its gains have been reduced to 0.32%.
MCX gold and silver futures closed with gains on Tuesday. The June gold contract hit a new lifetime high of Rs 69,139 before ending the day up slightly by Rs 52 per 10 grams to reach Rs 68,980, an increase of 0.08%. Meanwhile, the May silver contract closed unchanged at Rs 77,100, showing a marginal increase of Rs 64 or 0.08%.
Gold futures hit an all-time high of $2,308 per troy ounce on Comex.
The Dollar Index (DXY) fell below the 105 mark, paring its gains over the previous five sessions to 0.38%. At around 9 am Indian time on Wednesday, it was trading at 104.75, showing a decline of 0.07 points or 0.06%.
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Gold has been trading positively due to geopolitical tension in the Middle East. However, Anuj Gupta, head of commodities and currency at HDFC Securities, said the recent price rise is mainly due to hopes of a rate cut by the US Federal Reserve.
He mentioned that the next target for Comex gold is between $2,320 and $2,400, while for MCX gold, it is projected to be in the range of Rs 70,635-71,750/73,555. Similarly, for Comex silver, targets are estimated to be between $26.94 and $28.45/$30.09, and for MCX silver, it is expected to be between Rs 79,570-84,000/87,105 , according to analyst at HDFC Securities.
Gupta further stated that MCX prices have increased by 2.54% or Rs 1,716 in April so far. Year to date, there has been an increase of Rs 6,185 or 9.79%. Regarding the silver contract, he said that the previous month's gains are 4.02% or Rs 3,021, while the year-to-date gains are 4.89% or Rs 3,622.
Naveen Mathur, Director of Commodities and Currencies at Anand Rathi Shares and Stock Brokers, believes that the trajectory of MCX gold will continue to be bullish in the near term. This optimism is fueled by rising geopolitical tensions and expectations of a supportive stance from the US Federal Reserve. With US payroll numbers scheduled for release this week, Mathur expects continued volatility in prices. He remains hopeful that the Rs 70,000 mark can still be reached within 1-2 weeks on MCX.
Gupta also mentioned that the price of gold in major physical gold markets like Delhi, Ahmedabad and other cities is Rs 69,300 per 10 grams. Further, he noted that the price of 1 kg of silver is Rs 79,000.
Technical analysis by Neha Qureshi, Senior Technical Analyst, Derivatives at Anand Rathi Commodities & Currencies, noted that on the daily chart, MCX April Gold Futures have exceeded their ascending channel pattern. They are demonstrating a trend of upward highs and lows, indicating upward momentum. However, she warned against a potential pullback in prices as the Relative Strength Index (RSI) entered the overbought zone. Qureshi identified resistance points at Rs 69,230 and Rs 69,450, with support levels at Rs 68,580-Rs 68,100.
Neha Qureshi's business strategy suggests the following:
1. Buy MCX June gold futures at Rs 68,900. Set a stop loss at Rs 68,500 and aim for a target price of Rs 69,400.
2. Buy MCX May silver futures for Rs 77,000. Set a stop loss at Rs 76,000 and aim for a target price of Rs 79,000.