This increase is explained by the slippage of the dollar index (DXY) which oscillated near the 104.25 mark, down 0.05 or 0.04%. It is down 0.73% over the last five trading sessions.
Last week, June gold futures on MCX hit a lifetime high of Rs 70,699 per 10 grams. They ended at Rs 70,599 down by Rs 37 or 0.05%. Meanwhile, May silver futures set a lifetime high of Rs 81,030 per kg before closing the week at Rs 80,850, down Rs 13, or 0.02 per cent.
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On the Comex, gold futures hit a lifetime high of $2,372 per troy ounce.
Anuj Gupta, head of commodities and currencies at HDFC Securities, expects gold’s rise is likely to continue until prices rise above $2,225 and Comex gold may move towards $2,370 and $2,400 in the short term. in his opinion. As for MCX gold, the June contract has resistance at Rs 72,650-73,555 with support placed at Rs 69,200-69,022. Prices rose by 4.86% or Rs 3,298 on MCX in April so far, Anuj Gupta, head of commodities and currencies, HDFC Securities said. On a year-to-date basis, the increase is Rs 7,777 or 12.30%. As for the Silver contract, this month’s gains stand at 8.82% or Rs 6,604, while year-to-date gains are 9.68% or Rs 7,226, added Gupta. The price of gold in major physical gold markets like Delhi, Ahmedabad and other cities is Rs. 71,000 per 10 grams while that of 1 kg of silver is Rs 82,000, said Gupta.
“China’s central bank has steadily purchased gold for its reserves for 17 months since March, contributing to the recent surge in gold prices to a record high. In March, the gold reserves of the People’s Bank of China increased by 0.2% to 72.74 million troy. ounces, marking the smallest increase in this continuing streak of monthly purchases that began in November 2022. This buying frenzy, particularly notable from China and India, has been a key factor in the strength of the gold since 2022, alongside expectations of falling interest rates in the United States. ” said Neha Qureshi, senior technical and derivatives analyst at Anand Rathi Commodities & Currencies.
This accumulation of gold by central banks reflects a broader context of geopolitical tensions and economic uncertainties, contributing to the metal’s appeal as a safe haven, she said.
On the daily chart, the April MCX Gold contract broke out of its ascending channel pattern, showing an ascending high and low pattern that indicates bullish momentum, Qureshi said while warning of a likely pullback as the Gold RSI has reached an overbought zone. Analyst Anand Rathi sees resistance at Rs 70,900 – Rs 71,300 while support at Rs 70,100 – Rs 69,700.
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Intraday Trading Strategy by Neha Qureshi
– Buy MCX JUNE Gold futures at Rs 70,700 with a stop loss of Rs 70,300 and a price target of Rs 71,300.
– Buy MCX MAY Silver futures at Rs 80,900 with a stop loss of Rs 79,900 and a price target of Rs 82,900.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
