MCX Gold prices received some relief from the ongoing correction as the dollar index slipped slightly. At the market opening time, gold traded with a positive bias.

The MCX December gold futures were up by Rs 7 or 0.01% from the Thursday closing price at Rs 57,853 per 10 gram on the MCX. On the other hand, December Silver futures were higher by Rs 685 or 0.97% trading at Rs 71,285 per kg.

The dollar index (DXY) was hovering near 106.05 against a basket of six major currencies, down by $0.18 or 0.17%.

Gold futures on the month-to-date basis are down by 3.78% or Rs 2,246, while on the year-to-date basis, they have gained 3.84% or Rs 2,111, according to Anuj Gupta, Head Commodity & Currency at HDFC Securities.

Gupta also stated that silver futures witnessed a decline of 6.71% or Rs 5,082 in September, while gains for the year stand at 1.71% or Rs 1,187.

On Comex, gold futures were trading at $1,891.20 per troy ounce on Thursday, up by $0.30 or 0.02%. Similarly, Silver futures were at $22.695, higher by $0.029 or 0.130%. The Comex prices are at a month low.

The October gold futures ended with declines of Rs 440 or 0.75% per 10 gram at Rs 57,843, while December Silver futures closed lower at Rs 70,610, down by Rs 61 per kg or 0.09% on a holiday-curtailed trading session.

Anuj Gupta further said, ‘As expected, gold prices fell sharply and closed at 6-month low levels of Rs 57,128 on the back of strength in the dollar index, which is trading at a 10-month high level at 106, putting pressure on gold as demand is shifting from gold to dollar.’

According to the HDFC Securities analyst, gold is expected to trade at $1,855-$1,850 on Comex and between Rs 56,800 and Rs 57,500 on MCX with the strength of the dollar index, which has been on the rise due to hawkish statements by the Fed in the latest monetary policy.

The physical price of gold in top Indian cities like Delhi and Ahmedabad is around Rs 58,800 per 10 gram, while for silver, it is Rs 72,500 per kg.

Intraday Trading Strategy by Anuj Gupta:

– Sell MCX December Gold futures at Rs, with a stop loss of Rs 58,120 and a price target of Rs 57,570
– Sell MCX December Silver futures at Rs 70,950 with a stop loss of Rs 70,400 and a price target of Rs 72,040.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)